ECN230 The
Economics of International Trade
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Tuesdays: S121 (Sorhellinga):
room for only 50 persons Wednesdays: T401 in Tower Bldg Slides will continue to be updated
throughout the semester. |
Course description and
lecture plan (autumn 2025):
Course description [kursbeskrivelse]
Lecture plan and schedule [kursplan]
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Session / date |
Description of Lecture Topic |
Outline |
Reading Assignment |
Slides, handouts, tutorials, and exercises |
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Part
1. Theoretical Background and Specification of Trade Models |
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1 02.09 |
Introduction to
course and course objectives Section 1: Intro
to international economics; 1.1 Economic theory; 1.2 General trends; 1.3
Motivation for trade Section 2:
Partial equilibrium trade modeling; 2.1 Analyzing international trade |
Appleyard and Field text (AF): ch 1 AF: ch 14 (p. 279-81) |
Slides: session-1 Handout: 3-panel diagram Tutorial: Free trade Video: 3-panel diagram |
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2 03.09 |
Exercise session: Work in groups
to complete exercise 1: download the set that refers to your group number.
Work must be approved; instructor available for
consultation. Submit
by first thing Friday if necessary Video tips for Exercise 1,
parts 1.1 - 1.4: https://nmbu.cloud.panopto.eu/Panopto/Pages/Viewer.aspx?id=b3a51e56-664a-46ba-be06-b1a300c9c577 Tips for part 1.5 (transport
costs): https://nmbu.cloud.panopto.eu/Panopto/Pages/Viewer.aspx?id=491b5287-8107-4445-994e-b1a300c95314 |
Exercise 1: Slides: session-2 |
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3 09.09 |
Review assignment 1. Section 2:
Partial equilibrium trade modeling; Section 3:
Ricardian general equilibrium model; 3.1 Contributions from Smith to Ricardo;
3.2 Specification of the Ricardian model; 3.3 Present 2 x 2 x 1 trade model |
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AF: ch 2-3 Supplementary reading packet (SRP) SRP: session 3 |
Slide: session 3 Handout: 2 x 2 x 1
model Tutorial: Ricardian
model |
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Youtube summary
video: https://www.youtube.com/watch?v=C7Qc4GOgnLU&t=3s Ricardian 2x2x1 general equilibrium trade model |
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4 10.09 |
Section 3.4-3.9:
Ricardian 2x2x1 model; Law of one price, terms of trade; gains from trade;
implications of preferences / country size; Conclude Ricardian model; Section 4.
Heckscher-Ohlin-(Samuelson) 2x2x2 model |
AF: ch 2-5 SRP: session 4 |
Handout: 2 x 2 x 1
model Slides: session-4 |
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5 16.09 |
Section 4: H-O-S
model; 4.1 Specification of the H-O-S 2 x 2 x 2 model; 4.2 Assumptions of the
model; 4.3 - 4.11 Construct of the model; 4.12 Graphical representation |
AF: ch 5 |
Slides: session-5 Handout: 2 x 2 x 2 model Tutorial: H-O-S model |
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6 17.09 |
Exercise session: Work on exercise 2: download the set that refers to
your group number. Work must be submitted for approval if necessary by first thing following Friday Video
tips for exercise 2: https://nmbu.cloud.panopto.eu/Panopto/Pages/Viewer.aspx?id=d7f3190c-c50c-4d26-9a2a-b1ed00aedb08 |
Exercise 2: |
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7 23.09 |
Review
assignment 2. Section 4: H-O-S
general equilibrium trade model 4.12 Graphical representation of trade in
large-country case and identical preferences; TOT and changes in TOT; Section
5. Theory of factor markets; 5.1-5.5 Marginal product (MP) of labor and
wages; factor market equilibrium and mobility; changes in relative prices
from trade |
AF: ch 5-6 |
Slides: session-7 Handout: 2 x 2 x 2 model |
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Input-Output Price Relationship and
Factor Markets: https://nmbu.cloud.panopto.eu/Panopto/Pages/Viewer.aspx?id=af7ad5d2-ff3f-4699-8e7c-b36e00b68711 |
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8 24.09 |
Section 5: Output
prices, input prices and factor re-allocation; SRP readings on trade and
wages; Section 6: Summary of the H-O-S model; theorems and expectations |
AF: ch 6, 8-9 SRP: session 8 |
Slides: sessions_8-9 |
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9 30.09 |
Section 6:
Summarize H-O-S model: theorems, expectations and limitations; Section 7:
Economic growth; growth and sectors, production, consumption and trade In-class group exercise: Scenario analysis |
AF: ch 11 SRP: session 9 New article on: Income
convergence |
Slides: sessions_8-9 Handout: Economic growth Tutorial: Economic growth |
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10 01.10 |
Section 7: Growth and large country effects; Section
8: Prebisch-Singer Hypothesis; 8.1 Dependency
theory; 8.2 Proposition 1; 8.3 Proposition 2; 8.4 Counter-arguments
to dependency theory |
AF: ch 11, 18; SRP: session 10 Additional Required Readings (RR): Lutz |
Slides: |
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11 07.10 |
8.5 Outward-oriented ag-export led growth or
inward-oriented growth import substitution industrialization |
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Slides: |
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Part 2. Trade Policy, Imperfect Competition,
Economies of Scale and Factor Mobility |
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12 08.10 |
Introduce Part 2. Section 1. Offer curve analysis; Section 2.
Measuring social welfare (consumer and producer surplus) changes from trade
liberalization; Section 3.1-3.5: Tariffs, types, objectives, theoretical
issues and practical experiences |
AF: ch 7, 16 (p. 357) SRP: sessions
12-15 |
Slides: Tutorial: import
tariff |
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Videos: Offer Curve Analysis: https://nmbu.cloud.panopto.eu/Panopto/Pages/Viewer.aspx?id=9a829d81-1349-4c68-aea8-b1fc00b9081d Welfare analysis: https://nmbu.cloud.panopto.eu/Panopto/Pages/Viewer.aspx?id=bca6a315-a6d8-48ff-b291-b1fc00b91122 YouTube short video, Offer curve analysis: https://youtu.be/n5jvt3n-AR8 Youtube short
video, Welfare measurement: https://youtu.be/FAUPJlXGqQo |
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13 14.10 |
Conclude section 3: tariffs; Section 4.1-4.4: Trade policy analysis,
import and export quotas; section 4.5: tariff-quota non-equivalence |
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AF: ch 13-14; SRP: sessions
12-15 RR: Houck, ch
5; Tweeten, ch
4 |
Slides: Tutorials: import
tariff, import
quota, export
quota |
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Youtube short video, Quota
analysis and tariff-quota equivalence: |
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14 15.10 |
Exercise session: Work to complete
and submit exercise 3: download the set that refers to your group number.
Work must be approved or submitted by Friday, 12:00!
Teaching assistant and instructor available for consultation. |
Exercise 3: |
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15 21.10 |
Review
assignment 3. Section 5: Trade policy analysis of an export tax; 6.1-6.5: Trade
policy analysis of an export subsidy |
AF: ch 13-15 RR: Houck, ch
5; Tweeten, ch
4 SRP: sessions 12-15 |
Slides: Tutorial: export tax, export
subsidy |
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16 22.10 |
Exercise session: Work to complete
and submit exercise 4 by Friday, 12:00! Download the set that refers to your
group number. Work must be approved; Teaching assistant and instructor
available for consultation. |
Exercise 4: |
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17 28.10 |
Review
assignment 4. Conclude export subsidies; Lerner symmetry (import tariff and export
tax); Section and summarize trade policy; trade policy and the Trump trade
war |
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AF: ch 15, 18 RR: Houck, ch
5; Tweeten, ch
4 RR: Houck-subsidies |
Slides: |
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18 29.10 |
Section 7: Case for and against policy intervention;
Section 8.1-8.2: Policy intervention and strategy in developing
countries; Asian miracle and the role of trade |
AF: ch 15, 18 SRP: session
18-19 Case-study: US-EU
sugar policy |
Slides: session 18 2009 BBC Podcast on African Trade Not Aid (development strategy and
sustainability) |
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19 04.11 |
Section 8.2-8.3: Asian
miracle, and the financial crisis (implications of an export-led growth
strategy); Strategies in mature economies |
AF: ch 15-16; SRP: session
18-19 |
Slides:
session 19 |
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20 05.11 |
Section 9.1-9.3: Imperfectly competitive trade; causes of imperfect
competition; monopoly and trade; Section 10: Imperfect competition and
economies of scale |
AF: ch 10, 12; SRP: session 20 Case-study: Aircraft duopoly |
Slides: |
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21 11.11 |
Section 11.1-11.4. International factor mobility, labor and capital |
AF: ch 12 SRP: session 21 |
Slides: |
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22 12.11 |
Section 11.5: international factor mobility and EOS; Section 12:
Choice of internationalization strategy by firm In-class group exercise: Scenario analysis |
AF: ch 12 SRP: session 22 |
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26.11 |
Final exam review - instructions and tips on use of time: https://youtu.be/-tO5VMQYZC4 Final exam review - quick summary of the semester: https://youtu.be/tdgcZhifCV8 |
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Review session To be confirmed |
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