Description

This course presents an overview of international trade theory and policy. The purpose is to explain how economic theory and policy analysis can help the student to understand the economic opportunities and challenges the world will face in the future. Thus, the course aims to present the theory and practice of international trade and of trade-related policies. It focuses on analyzing the gains from trade, the changing patterns of trade, the income distributional consequences of liberalizing foreign trade, the relationship between trade, investment, and economic growth, and the reasons for and consequences of trade policies

Program

MBA

Objectives

• Upon completion of this course students will be able to: • Comprehend economic dimensions and the theory of international trade as well as international trade policy. • Demonstrate the relevance of the theory in the analysis of existing patterns of international trade, the conduct of trade policy and the economic implications of international trade and trade policy. • Understanding the economic opportunities and challenges the international trade faces. • Identify major recent developments in the world trading system. • Employ the principle of comparative advantage and its formal expression and interpretation within different theoretical models. • Analyze the effects of changing trade barriers on factor returns, composition of consumption and production, and welfare. • Evaluate the incentives and welfare consequences of offshoring. • Compare at the level of formal analysis the major models of international trade and be able to distinguish between them in terms of their assumptions and economic implications. • Use the standard models of international trade to interpret and analyze problems and issues in international economics. • Apply partial equilibrium and general equilibrium models in analyzing the economic effects of trade policy instruments, retaliatory measures and the creation of regional trading arrangements. • Distinguish and critically analyze the main arguments for protection and conversely be able to critically evaluate the relevance and realism of arguments for free trade. • Critically analyze key issues raised both by the current round of WTO negotiations and by the spread of regional trading arrangements. • Enhance analytical skills and capability to synthesize information from several perspectives. • Demonstrate major recent developments in the world trading system. • Explore the effects of trade on domestic economies and on the global economy.