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Regular version of the site

International Тrade-II

2019/2020
Academic Year
ENG
Instruction in English
3
ECTS credits
Course type:
Elective course
When:
4 year, 3 module

Course Syllabus

Abstract

This course analyzes the causes and consequences of international trade and investment. The structure of the course follows Feenstra and Taylor textbook (FT, see reference below). We will also use material from the Krugman, Melitz, Obstfeld textbook.
Learning Objectives

Learning Objectives

  • Students will learn why nations trade, what they trade, and who gains from this trade. We examine the role played by multinational firms. We then analyze the motives for countries or organizations to restrict or regulate international trade and study the effects of such policies on economic welfare.
Expected Learning Outcomes

Expected Learning Outcomes

  • Know how to apply modern concepts to better understand the problems international economists study: the structure and volume of trade flows, gains from trade, trade policy issues.
  • Explain how the modern models of international economics are developed and used to study the relevant economic questions.
Course Contents

Course Contents

  • Introduction
    A brief description of the course and some facts about international trade (FT, Chapter 1)
  • Comparative advantage in the Ricardian model
    Comparative advantage: how does international trade generate gains for countries? (FT, Chapter 2)
  • Specific-factor model
    How does trade affect income across workers and stakeholders across industries? (FT, Chapter 3)
  • Heckscher-Ohlin model
    How does trade affect returns to capital and income across different types of workers? (FT, Chapters 4 and 5)
  • Migration, capital flows, and offshoring
    Effects of migration, capital flows across countries, and offshoring on wages and welfare. How does migration and capital flows affect workers and owners of capital in the source and destination countries? What is offshoring? How is offshoring different from earlier trends in globalization? (FT, Chapter 5 and 7)
  • Increasing returns to scale and firms export decisions
    Does trade reduce monopoly power? What are the gains from increasing variety of consumption goods? Why free trade is Canada is less controversial than free trade with Mexico? (FT, Chapter 6 + additional lecture notes)
  • Trade policy and political economy of trade policy
    What types of policies affect international trade and how? How trade policies of one country affect welfare in another? Why countries do not always maximize welfare? Why some interest groups are favored over others? (FT, Chapters 8 – 10)
  • International trade agreements
    What is the WTO and how does it work? How was NAFTA put in place? (FT, Chapter 11)
Assessment Elements

Assessment Elements

  • non-blocking Home assignments
  • non-blocking Midterm exam
  • non-blocking Final exam
Interim Assessment

Interim Assessment

  • Interim assessment (3 module)
    0.25 * Final exam + 0.5 * Home assignments + 0.25 * Midterm exam
Bibliography

Bibliography

Recommended Core Bibliography

  • Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2015). International Economics: Theory and Policy, Global Edition (Vol. Tenth edition, global edition). Boston: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=nlebk&AN=1419045

Recommended Additional Bibliography

  • Stern, R. (2017). Balance of Payments : Theory and Economic Policy (Vol. First edition). London: Routledge. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=nlebk&AN=1565159
  • Takashi Negishi. (2014). Developments of International Trade Theory. Springer. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.spr.advjbe.978.4.431.54433.3