The course aims at providing the students with the ability to understand the main determinants and effect of international trade. The course will present the main theoretical models of international trade, starting from the classical ones up to the most recent ones with heterogeneous firms. The course will also provide an overview of the most important empirical studies on the determinants, effects, and evolution of international trade. The course provides the basic concepts to understand the dynamics of international trade and the analytical instruments to analysis the economics events.
Students are expected to have a good knowledge of Microeconomics and a good understanding of Algebra, Calculus, and Statistics. Knowledge gaps among students, if any, shall be filled by means of a dedicated lecture.
The topics of the course are:
1) Classical theories of international trade (32h)
• Labor Productivity and Comparative Advantage: The Ricardian Model;
• Specific Factors and Income Distribution;
• Resources and Trade: The Heckscher-Ohlin Model;
• The Standard Trade Model;
2) New trade theories and modern theories of international trade (20h)
• External Economies of Scale and the International Location of Production;
• Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises;
• Models with heterogeneous firms.
3) Trade policy (8h)
• The Instruments of Trade Policy;
• The Political Economy of Trade Policy
4) International trade and developing countries (12h)
• Trade Policy in Developing Countries;
• Controversies in Trade Policy;
• International trade and armed conflict.
The course presents the main theories of international trade.
Lectures and practice sessions.
International Economics, P. Krugman, M. Obstfeld and M. Melitz (vol. 1). Pearson Education
Written exam with open-ended questions and problems to be solved. The questions will assess the student learning, the ability of using an appropriate technical jargon, and ability to synthesise complex issues. There is no oral exam. The final grade will be only determined by the written exam. 75% of the final grade will be determined by the student’s knowledge of the topics of the course and 25% will be determined by the ability of the student to elaborate, also in a personal and critical way, the course material.