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Regular version of the site

International Trade

2021/2022
Academic Year
ENG
Instruction in English
5
ECTS credits
Course type:
Elective course
When:
2 year, 2 module

Course Syllabus

Abstract

First, we discuss stylized facts, importance of international trade, and forces that drive international trade. Second, we study the classical theory of international trade based on technological differences or comparative advantages, including Ricardo and Heckscher-Ohlin models. The theory explains inter-industry trade. Third, starting from the growing tendency of intra-industry trade, we discuss why inter-industry trade is profitable for firms (increasing returns to scale at the firm level) and enjoyable for consumers (love for variety). We focus on the baseline monopolistic competition model and its applications in international trade in detail. The next step is to discuss modern interpretations of classical trade models and consequences of trade under combining classical and new trade theory. Therefore, we are going to discuss the “new new” trade theory where firms are heterogeneous. The main focus of this part of the course is on firm-level changes under trade liberalization. To conclude, new effects will be discovered in the new trade models by allowing variable markups.
Learning Objectives

Learning Objectives

  • The main purpose of the International trade course for students is to study the evolution of trade ideas.
Expected Learning Outcomes

Expected Learning Outcomes

  • Development of cognitive and soft skills: creativity and self-sufficiency
  • Development of research skills
  • Enhancing critical thinking and personal development skills
  • Extending theoretical knowledge
  • Learn how to use legal, regulatory, referential information and professional literature
  • Obtaining skills of efficient independent professional activities
  • Systemize theoretical knowledge received at lectures
Course Contents

Course Contents

  • Introduction to International trade
  • Classical trade theories: technology, comparative advantages, and factor endowments. Inter-industry trade.
  • Monopolistic competition model
  • New trade theory: intra-industry trade
  • Firms in international trade
  • Variable markups and trade
Assessment Elements

Assessment Elements

  • non-blocking Quizes
  • non-blocking Presentation
  • non-blocking Exam
  • non-blocking Quizes
  • non-blocking Presentation
  • non-blocking Exam
Interim Assessment

Interim Assessment

  • 2021/2022 2nd module
    0.4 * Exam + 0.1 * Presentation + 0.5 * Quizes
Bibliography

Bibliography

Recommended Core Bibliography

  • Fujita, M., & Thisse, J.-F. (2002). Does Geographical Agglomeration Foster Economic Growth? And Who Gains and Looses From It? CEPR Discussion Papers. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.cpr.ceprdp.3135

Recommended Additional Bibliography

  • Feenstra, R. C. (2004). Advanced International Trade : Theory and Evidence. Princeton, N.J.: Princeton University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=295542
  • Fujita, M., Krugman, P. R., & Venables, A. (1999). The Spatial Economy : Cities, Regions, and International Trade. Cambridge, Mass: The MIT Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=9243
  • Helpman, E. (2011). Understanding Global Trade. Harvard University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.hup.pbooks.9780674060784
  • Pierre-Philippe Combes, Thierry Mayer, & Jacques-François Thisse. (2008). Economic Geography: The Integration of Regions and Nations. Post-Print. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.hal.journl.hal.00311000