The course is an introduction to international trade theory and policy. It has several objectives, which are spelled out in detail below. Knowledge and Understanding: This course provides an introduction to the theory of international trade and international factor mobility. It will also introduce and analyze the effects of the basic international trade policy tools. Applying Knowledge and Understanding: As a result of the course, the students will be able to understand why countries trade, what are the consequences of trade in terms of welfare and income distribution, and what kind of instruments government use to affect trade flows. Making Judgements: As a result of the course, students will be able to better understand the economic and political consequences of international trade and factor mobility, and make more informed assessments of the costs and benefits of globalization. Communication Skills: The course will familiarize students with the basic concepts of international trade and will enable them to make more precise and well defined assessments of the debates related to globalization. Learning Skills: Through the widespread use of exercises to understand the working of the economic models presented in class, the students will improve their problem solving skills and develop their ability to understand the role played by alternative assumptions in the development of theoretical economic frameworks.
- General introduction on globalization, trade flows and the international movement of production factors -Technological differences and international trade: The Ricardian Model -Trade and income distribution: The Specific Factors Model - Resources and international trade: The Heckscher-Ohlin Model
Part 2 (Credits 4-6)
- External economies and intraindustry trade - International flows of production factors: An overview - Understanding international migration - Firms in the global economy
Part 3 (Credits 7-9)
- The instruments of trade policy - Perfectly competitive markets: The impact of a tariff in a small and large open economy; partial and general equilibrium analysis - Non Tariff Barriers - Trade policy under imperfect competition - The economics of preferential trading agreements - The Political Economy of Protection