Course Description

Course Name

The World Economy

Session: VDNS3121

Hours & Credits

18 Credit Points

Prerequisites & Language Level

Taught In English

  • There is no language prerequisite for courses at this language level.


The development of the world economy and ways in which different economies impinge on each other. Provides a broad perspective on the structure of the world economy and an introduction to some important current issues.

This paper applies the economic theory you have covered in both BSNS 104 and ECON 112 to historical and current issues in the world economy. Some new models may also be introduced. This paper discusses the ideas and institutions that formed the world economy and explores current globalisation issues. The topics are divided into two main sections: international monetary relations and international trade relations. The first section highlights developments in the international monetary system (including the gold standard and Bretton Woods systems); implications of a country's choice of foreign exchange regime; currency crises; and issues surrounding single currency areas like the Euro. The second section covers issues about globalisation: mercantilism versus economic liberalism; the World Trade Organisation (WTO) versus regional trading arrangements; and the importance of international trade in New Zealand.

Learning Outcomes
Upon successful completion of this paper:
-Students should have a general understanding of the international monetary system and international trade relations
-Students should develop both knowledge and appreciation of applying general micro- and macro- economic principles and theory in evaluating behaviour and interactions in our growing world of economic integration
-Students should learn to analyse current issues and policy debates in this area and be able to assess and critique international monetary and trade policies from a more knowledgeable perspective

Husted, S. and Melvin, M. (2013) International Economics (International Edition), 9th ed., Pearson.

*Course content subject to change