4.0

credits

Average Course Rating

International Trade Theory gives an overview of the causes and consequences of international trade, as well as the institutional context in which trade (and factor movements) take place in the modern economy. Topics in the first half of the course include: determinants of trade flows, effects of trade on economic welfare and income distribution, trade and economic growth, international labor and capital flows, including foreign direct investment, and the emergence of global value chains. The second half of the course focuses on policy issues: efficiency and redistributive effects of tariff and nontariff protection of domestic industries, the theory of preferential trading agreements, and trade and economic development. We will also pay attention to empirical methods for testing trade theories and for measuring the effects of international trade and the consequences of trade policies, and to institutional issues such as the history of the global trading system, multilateral trade negotiations and the GATT/WTO system, and regionalism.