This course examines the theory of comparative advantage as the basis for international trade and specialization. The major part of the course is devoted to the international monetary system and covers the foreign exchange market, concepts of balance of payments, mechanisms of balance-of-payment adjustments, and international capital movements. The effects of tariffs, other barriers to trade, and restrictions on foreign exchange movements are analyzed.

Prerequisites: (ECON1020 and ECON1030) or ECON1010