International Economics

Course description

This course is taught in the economics undergraduate program at Universitas Indonesia (UI). This is a 14-week course and I co-deliver it with Kiki Verico (the guy needs no introduction. If you don’t know him it’s on you). I cover the first 7 while KV the last 7. This sites contain my side of the delivery. The first 7 focuses on updating you with trade theory, from the most primitive to currency. Last 7 covers trade policies and movement of capitals (finance stuff).

This course is intended to provide a fundamental understanding of the basics of international economics. Essentially, international economics can be divided into the economics of international trade and the economics of international finance. In both streams, we cover theories and policies in international trade and international finance. In international trade, we study why countries trade with each other, what determine trade patterns, and how 2 countries gain from trade. In international finance, we study the flows of capital between countries, how exchange rate is determined, and how countries gain from movement of capital.

See the complete syllabus here. this page is a short version.


  • Macroeconomics 1
  • Microeconomics 1

In particular, we expect students to understand basic micro stuff (e.g., preference axioms, welfare theorems) as well as basic macro stuff (e.g., growth theory, interest rate, X-M).

Learning goals

  • Understanding the consequences and nuances of international economics in welfare and policy-making.

  • Able to use theories and cite empirics on international economics phenomena and policies.

Course materials

Main textbooks:

  • [KOM] Krugman, Obstfeld and Melitz, Inetarnational Economics: Theory and Policy.
  • [FT] Feenstra and Taylor, International Economics.

We also sometimes use other resources.

meeting Topik Bahan
1 Introduction KOM1,2
2 Ricardian model KOM3; FT2
3 Specific factor model KOM4; FT3
4 Hecksher-Ohlin model KOM5; FT4
5 The standard model KOM6
6 Firm internalization KOM7,8; FT6
7 Offshoring FT7; KOM7,8; others