Economics: International Econ I: Trade

Trade Theory, policy, and history of international trade patterns, terms of trade, protectionism, competitiveness, structural adjustment, and international aspects of microeconomics. Prerequisites: ECON 1400, ECON 1450.

Asynchronous online

In this course we study international trade flows, and the economic factors that determine them. We begin with a study of classical trade theory, and then we carefully build the neoclassical model of trade. Next we examine “post-neoclassical” theories of trade that incorporate features such as strategic behavior, increasing returns and imperfect competition. We will study the various trade policy instruments, especially tariffs and quotas, and their economic impact. We finish the course by evaluating the merits of the arguments in favor of trade protection. Much of the analysis employs graphical tools introduced in introductory microeconomics (EC 12). As this is a prerequisite for the course, I assume students’ familiarity with supply and demand, and the basic economics of firm behavior, industry supply and consumer choice.

This course combines recorded lecture and discussion board formats. Students should expect to spend 10-12 hours a week on coursework. There will be a required textbook and some outside readings will be posted on Brightspace.

Grades are based upon homework assignments, discussion board assignments, a midterm exam and a final exam.