Overview
Welcome to Economics 476, a three–credit, senior–level course in economics at Athabasca University. This course, International Finance, which is relatively broad in scope, should provide you with a firm grasp of the topical issues in the world of international finance. The course is divided into nine units, with each unit serving a distinct purpose, and covering topics that range from balance of payments to economic policies to the International Monetary System.
In recent years, there have been significant changes in the macroeconomies of various countries, with new trade agreements and the process of globalization driving the structural changes. In addition to providing you with a theoretical framework in which to investigate these issues, this course examines several proposals aimed at reforming the International Monetary System. If any of these proposals were to be implemented, their effects would be felt by every one of us. This course provides you with some of the tools that you, as an economist, might need to thrive in the new global economy.
Outline
The course material is divided into nine study units. These units are as follows:
- Unit 1: The Balance-of-Payments Accounts
- Unit 2: The Foreign Exchange Market
- Unit 3: The Monetary and Portfolio Approaches to External Balance
- Unit 4: Price Adjustments and Balance-of-Payments Disequilibrium
- Unit 5: Economic Policy under Fixed Exchange Rates
- Unit 6: Economic Policy under Flexible Exchange Rates
- Unit 7: Aggregate Demand and Aggregate Supply in the Open Economy
- Unit 8: The Choice of Fixed or Flexible Exchange Rates
- Unit 9: The International Monetary System
Learning outcomes
After successfully completing this course, you should be able to do the following:
- Know the basic principles of balance-of-payments accounting and discuss the concepts of “balance” in a country’s balance of payments.
- Understand and describe the nature, components, and functioning of the foreign exchange market, and to be able to explain the relationship between the foreign exchange market and financial markets.
- Understand and explain how money and asset markets influence and are influenced by the balance of payments and exchange rates.
- Understand and describe the manner in which changes in the exchange rate affect the current account, changes in the current account influence the aggregate macroeconomy, and changes in the macroeconomy influence the current account.
- Understand the working and application of the IS/LM/BP model and to be able to use the model to illustrate how domestic macroeconomic policy instruments can influence the open economy under a system of fixed exchange rates and under a flexible exchange rate system.
- Understand and explain how trade and international payments influence the macroeconomy when prices are flexible.
- Understand and describe the determinants of the exchange rate and to be able to discuss alternative exchange rate regimes.
- Know the desirable features of an effective international monetary system, analyze the characteristics and problems of the Bretton Woods system, and evaluate the current international monetary arrangements with respect to the difficulties that they face.
Evaluation
Your final grade in Economics 476 will be based on your performance on three quizzes, two assignments, and a final examination. The passing grade for the Final Examination is D (50 percent). You must also achieve an overall course grade of at least D (50 percent). The weighting of each assessment activity is indicated in the table below.
| Activity | Weight | Complete by |
| Quiz 1 | 5% | after Unit 2 |
| Quiz 2 | 5% | after Unit 5 |
| Assignment 1 | 20% | after Unit 5 |
| Quiz 3 | 5% | after Unit 9 |
| Assignment 2 | 20% | after Unit 9 |
| Final Exam | 45% | after Unit 9 |
| Total | 100% | |
In response to COVID-19 containment directives, temporary online exam(s) are available for this course.
Materials
Digital course materials
Links to the following course materials will be made available in the course:
Appleyard, D. R., & Field, A. J., Jr. (2017). International economics (9th ed.). New York: McGraw-Hill/Irwin. (ISBN 9781259693762)
Other Resources
All other learning resources will be available online.
Challenge for credit
Overview
The challenge for credit process allows you to demonstrate that you have acquired a command of the general subject matter, knowledge, intellectual and/or other skills that would normally be found in a university-level course.
Full information about challenge for credit can be found in the Undergraduate Calendar.
Evaluation
To receive credit for the ECON 476 challenge registration, you must achieve a grade of at least 50 per cent on the examination.
Paper Exam (3 hours)
Challenge for credit course registration form