This course introduces students to basic theories that explain international trade relations, the international monetary system and financial market operations. The section of international trade will cover the basic theories of trade, the export-oriented growth strategy as well as the political economy of trade policy. Moreover, the role of foreign direct investment and of the multinational companies will be discussed. Monetary aspects of the international economy are the subject of the second section. After a short presentation of the history of the international monetary system, the workings of the foreign exchange market will be analyzed. Moreover, issues like the rationale behind and effects of different exchange-rate policy regimes, the underlying reasons for international financial crises, the interplay between international and domestic macroeconomic forces in the adjustment of the Balance of Payments, will be discussed in this section.