Study of international trade theory and policy, immigration and capital mobility, and related topics in international macroeconomics. Emphasis on applying trade theory to real data and contemporary global events to understand changes in trade flows, policy choices, country-level risks and growth opportunities, and distributional outcomes.
Additional Requirements for Graduate Students: A course project or additional exam will be required of graduate students.
Athena Title
Intl Trade Theory and Policy
Prerequisite
ECON 4010
Semester Course Offered
Offered every year.
Grading System
A - F (Traditional)
Student learning Outcomes
Students will apply international trade models (e.g., Ricardian, Specific Factors, Heckscher-Ohlin, New Trade Theory) to explain trade patterns, relative prices, and the distribution of gains and losses across sectors, factors, and countries.
Students will evaluate the effects of trade policies (e.g., tariffs, quotas, export subsidies, trade agreements) on trade flows, prices, welfare, and the resulting winners and losers within an economy, identifying the key trade-offs such policies create.
Students will analyze how immigration, capital mobility, and productivity changes influence wages for different groups of workers, returns to factors, and opportunities for economic growth.
Students will interpret key open-economy macroeconomic indicators (e.g., balance of payments components, exchange rate movements, capital flows) and assess how macroeconomic conditions interact with international trade and policy choices.
Students will integrate theory and empirical evidence to evaluate contemporary global events by assessing country-level risks, growth opportunities, and the distributional implications of alternative trade and policy scenarios.
Topical Outline
Global Trade Patterns and Stylized Facts
Gains from Trade and the Ricardian Model
Increasing Opportunity Costs and Factor Endowments
Trade, Growth, Immigration, and Capital Mobility
Increasing Returns, Product Differentiation, and Global Value Chains
International Trade Policy: Tariffs, Quotas, and Trade Agreements
Trade Policy, Welfare, and Winners and Losers
Balance of Payments and Open-Economy Accounting
Exchange Rates, Capital Flows, and Trade Balance Adjustment
