ECN230 The Economics of
International Trade
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Notices and updates: 15 Dec 2024 – summary solutions posted |
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Exercise groups for ECN230 |
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Group 1 (exercise set 1) |
Group 2 (exercise set 2) |
Group 3 (exercise set 3) |
Group 4 (exercise set 4) |
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Course
description and lecture plan (autumn 2024):
Course description
[kursbeskrivelse]
Lecture plan and schedule [kursplan]
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Session / date |
Description of Lecture
Topics |
Lecture Outline |
Reading Assignment |
Presentation
slides, handouts, tutorials, and exercise assignments |
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Part 1. Theoretical Background and Specification of
Trade Models |
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1 03.09 |
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 04.09 |
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 10.09 |
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 11.09 |
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 17.09 |
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 18.09 |
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 24.09 |
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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8 25.09 |
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 01.10 |
Section
6: Summarize H-O-S model: theorems, expectations and limitations; Section 7: Economic growth; growth and sectors, production,
consumption and trade |
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 02.10 |
In-class group exercise: Scenario analysis 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: Handout: Economic growth |
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11 08.10 |
8.5 Outward-oriented ag-export led growth or
inward-oriented growth import substitution industrialization |
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Slides: |
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Short video session 10
(youtube): https://youtu.be/N5DkX0A2pwo
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Part 2. Trade
Policy, Imperfect Competition, Economies of Scale and Factor Mobility |
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12 09.10 |
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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New
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 15.10 |
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 16.10 |
Exercise session: Work to complete and submit exercise 3:
download the set that refers to your group number. Work must be submitted for approval; teaching assistant
and instructor available for consultation. |
Exercise
3: |
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15 22.10 |
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 23.10 |
Exercise session: Work to complete and submit exercise 4 before Monday!
Download the set that refers to your group number. Work must be approved;
instructor available for consultation. |
Exercise 4: |
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17 29.10 |
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 |
AF: ch 15, 18 RR: Houck, ch 5; Tweeten, ch 4 RR:
Houck-subsidies |
Slides: |
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18 30.11 |
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 05.11 |
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 07.11 |
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 12.11 |
Section 11.1-11.4. International factor mobility,
labor and capital |
AF: ch 12 SRP: session 21 |
Slides: |
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22 13.11 |
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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27.11 |
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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