The course aims to provide students with knowledge of the various theoretical models of international trade to assess the suitability of these models in explaining the existing realities of international trade and other related phenomena. The course also aims to provide students with the ability to schematically conduct simple partial and general balance analyzes of the main commercial policy tools using principles of political economy and commercial policy.
Expected learning outcomes
At the end of the course the students will be able to develop coherent, structured and balanced opinions on current debates in international trade, international cooperation and globalization and be able to communicate these opinions both orally and in writing. Students will also be able to apply the theoretical knowledge and analytical skills acquired by the course to analyze relevant political issues in the fields of agricultural trade, WTO trade negotiations and issues related to developing countries and economic development.
Lesson period: Second semester
(In case of multiple editions, please check the period, as it may vary)
0. Introduction to international trade topics International trade models: 1. Technology and International Trade: the Ricardian Model; 2. Gains and Losses from International Trade: the Specific-Factors Model; 3. Trade and Resource Endowment: the Heckscher-Ohlin Model; 4. Economies of Scale and Imperfect Competition; 5. Gravity Models and Gravity Equations; International Trade Policy: 6. Tariff and Quota Under Perfect Competition; 7. Export, Production Subsidies and Tax; 8. International Agreements on Trade and the environment; Advance topics: 9. Trade and welfare effects of environmental and food standards; 10. Trade, migration and climate change.
Prerequisites for admission
Microeconomics (... perfect and monopolistic competition models); statistics (elements of inferential statistics, linear multivariate model).
The teaching is based on formal lessons, as well as on the presentation and discussion of specific empirical studies (papers) related to the different topics of the course; the classroom exercises can be based on specific homework assigned by the teacher.
Textbooks 1. Feenstra R. C. e Taylor A. M. (2014). International Trade, Worth MacMillan, New York (F-T). This represent the reference book. 2. Krugman P., Obstfeld M. and Melitz M.J. (2012). International Economics. Theory and Policy, Pearson (K-O-M, just ch 8 (pp. 202-08). This chapter will be available on Ariel. Other readings will be suggested by the teacher in class (available in Ariel).
Assessment methods and Criteria
A written test at the end of the course, with about 20 multiple-choice questions (they may require simple mathematical accounts) and 2 open questions (one related to trade models, e.g. Ricardian Model; the other related to one of the empirical papers presented during formal lessons; see reading list on Ariel). Evaluation parameters: each multiple-choice question has a value of around 1.2 points; open-ended questions can be worth a maximum of 5 points each.
Useful material for the exam are the book exercises at the end of each chapter (see the Feenstra&Taylor solution manual on Ariel). Results of the exams will be communicate on Ariel