Markets, trade and global challenges, 7.5 Credits

Contents

This course covers the fundamental theories and concepts of microeconomics, with a focus on how markets and international trade function. The course examines the role of markets in resource allocation and price determination under perfect competition, emphasizing how the market mechanism achieves an effective allocation of resources. It then explores the impact of trade policies and agreements on various stakeholders, including producers, consumers, and governments.

The course also covers market failures and how they can cause global challenges, providing examples of these failures and their effects. Students will learn about taxes, subsidies, and other market interventions and how they can affect market equilibrium and address market failures. During the course the students will use graphical and mathematical tools to analyze microeconomic problems and gain a basic understanding of how to estimate demand.

Throughout the course, students will study microeconomic theories and concepts related to real-world situations and cases. They will discuss policies aimed at addressing global challenges such as sustainability and inequality. Effective communication of economic ideas and arguments, both in writing and orally, is a key part of the course.

The course also covers the limitations of economic models and theories in explaining real-world phenomena, with a particular focus on developing an awareness of social, environmental, and ethical issues associated with trade and markets. By the end of the course, students will have a solid understanding of microeconomic theory and its application to real-world problems, as well as a broader appreciation of the social and ethical implications of economic policies and practices.

Expected learning outcomes

Having completed the course the student is expected to be able to:

Knowledge and understanding

• Explain the fundamental microeconomic theories and principles that underlie markets and international trade.
• Describe the impact of trade policies and agreements on various stakeholders, including producers, consumers, and governments.
• Give examples of and explain market failures and how some are the cause of global challenges.
• Explain how taxes, subsidies and other market interventions affect market equilibrium and may correct for some market failures.

Competence and skills

• Use graphical and mathematical tools to analyze microeconomic problems.
• Use software to carry out basic demand estimation.
• Apply economic theories and concepts to real-world situations and cases.
• Discuss the effectiveness of policies aimed at addressing global challenges such as sustainability and inequality.
• Communicate economic ideas and arguments in English effectively, both in writing and orally.

Judgement and approach

• Identify limitations of economic models and theories in explaining real-world phenomena.
• Identify social, environmental, and ethical issues associated with international trade and markets.

Required Knowledge

Form of instruction

Learning is supported by lectures, literature, and discussions in seminars.

Examination modes

The examination consists of written assignments, seminars and an individual written hall exam. The results of assignments and seminars are only valid during the current semester.

The following grading scale will be used for the course: Pass with Distinction (Väl Godkänd, VG), Pass (Godkänd, G) and Fail (Underkänd, U).

A student who does not pass the first examination will be offered an opportunity to sit a re-examination within two months. An additional examination opportunity is normally offered every academic year, one week prior to the start of the autumn term. If required by specific circumstances, other forms of examination may be used.

A student that has failed an examination on two occasions has a right to have another examiner or grading teacher appointed, unless there are special reasons against it. A written request addressed to the Director of Studies should be made no later than two weeks before the next examination opportunity. A written request should be submitted to the Director of Studies no later than two weeks before the next examination opportunity.

Exceptions from examination form as stated in the syllabus can be made for a student who has a decision on pedagogical support for disabilities. Individual adaptations of the examination form should be considered based on the student's needs. The examination form shall be adapted within the framework of the expected learning outcomes stated in the course syllabus. At the request of the student, the course responsible teacher, in consultation with the examiner, must promptly decide on the adapted examination form. The decision must then be notified to the student.

Academic integrity and cheating

As a student, you are expected to act with academic integrity. This means writing and presenting within the limits of the academic rules and expectations communicated in the university's regulations and what is otherwise specified by the responsible department. Disciplinary action may be taken against students who uses unauthorized help aids or in some other way tries to mislead on a test or when another type of task is being evaluated. Rules and regulations concerning the production of academic texts and correct referencing will be applicable to written assignments. Submitted material may be subject to plagiarism control. In addition, Umeå University rules and regulations for education and research apply.