The first part of this course looks at both the theory and practice of international trade. Topics include an analysis of the gains from free trade and the effects of barriers to trade such as tariffs, subsidies, quotas, VER’s and other instruments of commercial policy. Other topics of discussion include the proliferation of regional trade arrangements, the WTO, and issues of specific concern to emerging market economies. The second part of the course focuses on international monetary theory and practice, and macroeconomic policymaking in an open economy. Topics include balance-of payments analysis, the foreign exchange market, theories of foreign exchange rate determination, emerging market currency crises, and European monetary union.