The Interdisciplinarity in Teaching International Economics

1. The Interdisciplinarity in Teaching International Economics Тatiana Houbenova, Prof.Dr. Economic Research Institute, BAS

2. Outline of the presentation • The need of interdisciplinarity of the International Economics • Factors contributing to the Interdisciplinarity • The case studies of interdisciplinarity: international capital and labour mobility and the international sanctions in EU-Russia trade. • Conclusions

3. Themain hypothesis: 1)The interdisciplinarity of the IE has been increasing under the impact of the globalisation trends. The specific features of globalisation cause the need of enlarging the scope of the analysis of the IE. 2) The IE’interdisciplinarity has been developing by internalising not only economic theories’ development but institutional, legal,historical, sociological, religious, cultural and political sciences as the international interdependence has been growing in all areas of life.

4. The need of interdisciplinarity as a result of the globalisation trends • Slow but steady pace of international economic convergence • Global trade has been undergoing profound changes with the rise of Asian economies and most notably China and India; • Global imbalances of BoP persist and challenges for the macroeconomic adjustment. • Three super-regional areas of integration (EU,NAFTA and South East Asia)

5. Factors (2) New regionalism The example of the new EU-US Trade Agreement as a globally relevant rule-based trade discipline as well as social, environmental and ethical standards in future multilateral trade negotiations. Glolal cities with critical role in the emerging patterns of global economy Outsourcing and global value chains:changing the approaches to development within the national framework The new role of space:becoming more “slippery” as capital, labour ,innovations, ideas travel more easily and more “thick” as remaining stuck in large agglomerations.

6. Factors-(3): Financialisation as demanding interdisciplinarity Financialisation of the world economy including: • Rising role of financial markets and the regulators as national and interational level on the global economy • Preferences for financial activities of non-financial entities not in the real but in the financial investment ,i.e. investment crowding out effect of financialization

7. Weaknesses The national economy’s’ exposure to the capital outflows is rising; dependence on the predominance of international financial conglomerates and groups and their liquidity problems; Exposure to foreign currencyrisks is rising. cross-border exposures imply large scope for contagion and also a potential channel for rapid foreign capital outflows in thecase of financial market stress Capital markets are becoming sophisticated – international reregulation is set to reduce risks of contagion; The budget and fiscal policies serve much more as an object of the crisis management in stead of their being used as instruments of adjustment. Monetary policies across nations are set on the same rail and thus reduce the risks of international arbitrage. International Capital Factors’ mobilitySWAT of Capital Liberalisation

8. High productivity growth Strong trade account Attractive investment opportunities Technology transfer along with the FDU’s Extra sources of external liquidity Financial intermediation is internationalised Risks in the financial industry Risks of regulation arbitrage Over-borrowing risks Volatility of asset prices and exchange rates Affect policy effectiveness International Capital Factors’ mobilitySWAT of Capital Liberalisation

9. Case study: The Impact of the Global Financial Crisis and the Challenges to the IE • Higher international interdependence as regards the decelaration of the rate of growth of the GDP since 2007/08 for all countries • Common lack of factors acting to give impetus to growth; • Higher dependence of the trade flows on the economic revival in the ineterdependent countries and regions. • Sharp reduction of capital inflows in some regions and countries and abrupt need to adjust to Lower Capital Inflows. • European Sovereign Crisis and its impact on the crisis of regional integration through the differentiated integration in the EMU 0.2.

10. The study of history of international sanction& effects The history of East-West sanctions The political dialogue history EU-Russia International trade studies International High-tech exchange International capital flows and offshore financial services The case study of the EU-Russia Sanctions: the challenges of the interdisciplinarity

11. Economic growth theories Institutionalism and Regulation Forecasting and programming Monetary economics International Finance and Financial Markets Regional economics New Economic geography International Political science Law: International Public law, International Private law Strategic Management Sociology History Religion The IE interdisciplinarity as a result of globalisation trends involves:

12. The Challenges to the studies of the IE “The unsettled ideas about the broad lines of economic policy make it suitable, as it was in the years of the post-war reconstruction, to reconsider the basic philosophy of our economic society.” (James Meade “The mixed economy: the intelligent Radical’s guide to economic policy”, Cambridge, August 1975.)

13. Conclusions • The International economics studies are in demand of new approaches for understanding global trends and providing policy relevant knowledge. • The GLobal crisis has increased the challenges to take into consideration further financialisation of the world economy and its impact on the interdisciplinarity of the IE studies. • THANK YOU FOR YOUR ATTENTION!