This course is focusing to expand knowledge on importance of the international trade in the
globalised world. There will be discussion about gains from the trade and necessity for
international policy coordination. What are obstacles for free trade, and which are trade
barriers. There will be discussion about tradable and no tradable goods and services as well
as about Ricardian model of country specialisation based on comparative advantages; what
are comparative advantage and why countries should specialise in production of goods and
services that have production advantages; do all benefits form the specialisation? Further,
there will be discussion about the benefits of the Economy of Scale and the International
Location of the Production; why the economy of scale decreases the cost of production of the
goods and services. What causes on Imperfect Competition, the impact of the Monopoly in
Competition and Trade; protectionism and antidumping policies, how to protect local markets.
What are tariffs, quotas, export retrains, and which are the effects. What are the roles of the
international organisations to guarantee free trade; who can be protected?
Chapter 1: Introduction
• What Is International Economics About?
• International Economics: Trade and Money
Chapter 2: International Trade Theory
• Who Trades with Whom?
• The Changing Pattern of World
• Do Old Rules Still Apply?
Chapter 3: Labor Productivity and Comparative Advantage: The Ricardian Model
• The Concept of Comparative Advantage
• A One-Factor Economy
• Trade in a One-Factor World
• Misconceptions About Comparative Advantage
• Comparative Advantage with Many Goods
• Adding Transport Costs and Nontraded Goods
• Empirical Evidence on the Ricardian Model
• Empirical Evidence on the Ricardian Model
Chapter 7: External Economies of Scale and the International Location of Production 137
• Economies of Scale and International Trade: An Overview
• Economies of Scale and Market Structure
• The Theory of External Economies
• External Economies and Market Equilibrium .
• Interregional Trade and Economic Geography
Chapter 8: Firms in the Global Economy: Export Decisions, Outsourcing and Multinational Enterprises
• The Theory of Imperfect Competition
• Monopolistic Competition and Trade
• Firm Responses to Trade: Winners, Losers, and Industry
• Dumping
Chapter 9: The Instruments of Trade Policy
Basic Tariff Analysis
Costs and Benefits of a Tariff
Other Instruments of Trade Policy
Chapter 10: The Political Economy of Trade Policy 219
• The Case for Free Trade
• National Welfare Arguments Against Free
• Income Distribution and Trade Policy
• International Negotiations and Trade Policy
Chapter 11: Trade Policy in Developing Countries
• Import-Substituting Industrialization
• Results of Favoring Manufacturing: Problems of Import-Substituting
• Trade Liberalization Since
• Trade and Growth: Takeoff in Asia
Chapter 12: Controversies in Trade Policy
• Sophisticated Arguments for Activist Trade Policy
• Globalization and Low-Wage Labor
• Globalization and the Environment