ECN230 · The Economics of International Trade

Course description and lecture plan (autumn 2017):

Course description  [kursbeskrivelse] Lecture plan and schedule [kursplan]

Session / date	Description of Lecture Topic	Lecture Outline	Reading Assignment	Handouts, Slides and Problem Set Assignments
Part 1.Theoretical Background and Specification of Trade Models
1 07.09	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	Outline 1	AFC: ch 1 AFC: ch 14 (p. 279-81)	3-panel diagram Exercise: assignment 1 Set 1 Set 2 Set 3 Set 4 Slides: session-1
11.09	Exercise session: Group work to complete assignment 1 – instructor available. Download the set that refers to your group number.
2 14.09	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	Outline 2	AFC: ch 2-3 SRP1	2 x 2 x 1 model Article on trade
3 18.09	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	Outline 3	AFC: ch 2-4	2 x 2 x 1 model
4 21.09	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	Outline 4	AFC: ch 5	Exercise: assignment 2 Set 1 Set 2 Set 3 Set 4
25.09	Exercise session: Group work to complete assignment 1 – instructor available. Download the set that refers to your group number.
5 28.09	Review assignment 2. Section 4: H-O-S general equilibrium trade model 4.12 Graphical representation of trade in large-country case and different 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	Outline 5	AFC: ch 5-6	2 x 2 x 2 model
6 02.10	Section 5: Output prices, input prices and factor re-allocation; SRP readings on trade and wages;	Outline 6	AFC: ch 8-9 SRP1	Slides: sessions_6-7
7 05.10	Section 6: Summary of 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	Outline 7-9	AFC: ch 11	Growth & trade
8 09.10	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		AFC: ch 11, 18;  SRP1; RR1: Lutz	Slides: sessions_8-9
9 12.10	Section 8.4: Counter-arguments continued; 8.5 Outward-oriented ag-export led growth or import substitution through manufacturing; Section 9: Role of government and investment; Introduce offer curves		SRP1: RR1: Segerstrom; Maxwell&Fernando
Part 2. Trade Policy, Imperfect Competition, Economies of Scale and Factor Mobility
10 16.10	Section 1: Offer curve analysis; Section 2: Welfare analysis; Section 3.1-3.5: Trade policy analysis: import tariffs	Outline 10	AFC: ch 7, 16 (p. 357); SRP2	Exercise: assignment 3 Set 1 Set 2 Set 3 Set 4
19.10	Exercise session: Group work to complete assignment 3 – instructor available. Download the set that refers to your group number.
11 23.10	Review assignment 3. Conclude tariffs; Section 4.1-4.4: Trade policy analysis: import and export quotas	Outline 11-12	AFC: ch 13-14;      RR2: Houck, ch 5; Tweeten, ch 4	Slides: sessions 10-12 Exercise: assignment 4 Set 1 Set 2 Set 3 Set 4
12 26.10	Section 4.5: Tariff-quota non-equivalence; Section 5: Trade policy analysis of an export tax; Lerner symmetry; Section 6.1-6.5: Trade policy analysis of an export subsidy		AFC: ch 14-15       RR2: Houck, ch 5; Tweeten, ch 4 SRP2 Case-study: Rare-earth-elements
30.10	Exercise session: Group work to complete assignment 4 – instructor available. Download the set that refers to your group number.
13 02.11	Review assignment 4. Conclude export subsidies and summarize trade policy; Section 7: Government intervention, trade policy and strategy (case for and against free trade/intervention)	Outline 13-15	AFC: ch 14-15       RR2: Houck, ch 5; Tweeten, ch 4
14 06.11	Section 7: Case for policy intervention, continued; Section 8.1-8.2: Policy intervention in developing countries; Asian miracle and trade’s role		AFC: ch 15, 18      SRP2 Case-study:_US-EU sugar policy
15 09.11	Section 8.2-8.3: Asian miracle, and the financial crisis (implications of an export-led growth strategy); Strategies in mature economies		AFC: ch 15, 18    RR2: Tweeten, ch 4 SRP2 Case-study:_Middle-income trap	Slides: sessions_14-16
16 13.11	Section 9.1-9.3: Imperfectly competitive trade; causes of imperfect competition; monopoly and trade; Section 10: Imperfect competition and economies of scale	Outline 16-18	AFC: ch 15-16 SRP2 Case-study: Aircraft duopoly	Imperfect competition & trade
17 16.11	Section 11.1-11.4. International factor mobility, labor and capital			Slides: sessions 17-18
18 20.11	Section 11.5: international factor mobility, EOS and Section 12: Firm’s choice of and internationalization strategy In-class group exercise: Scenario analysis		AFC: ch 10, 12 SRP2	Internationalization strategy: Export vs FDI
19 04.12	Review session			Exams-2000-04 Exams-2005-09 Exams-2010-14 Exams-2015-19