This course provides students with understanding of international trade theories. Focus is on alternative approaches used to explain the terms and pattern of trade. Students will examine the gains from commercial and trade policy. The course covers strategic trade policy, economic integration, and issues of protectionism.
- Understand the relation between international trade volume and world output, and identify overall trade patterns.
- Compare and contrast absolute advantage and comparative advantage and identify their differences.
- Analyze mercantilism, and explain its impact on the world powers and their colonies.
- Understand the factor proportions and international product life cycle theories.
- Understand what determines the flow of goods across countries, i.e. international trade, and what determines the flow of savings and investments from one country to another, i.e. international finance.
- Understand the new trade and national competitive advantage theories.
- Analyze applications to a number of topics of current interest, including the debate on globalization, European integration, the U.S. current account deficit, free trade agreements, the medium run prospects for exchange rates, and the debate on global financial architecture following the financial crises in East Asia and Argentina.