TA5 International trade (5 cr)

Code:
ECOK-259
Field:
Macroeconomics
Target:
Bachelor's students
Organiser:
University of Helsinki - Economics
Instructor:
Ashim Kar
Period:
Period 1
Format:
Lecture
Method:
Contact teaching
Venue:
Economicum
Enrollment:

In case of conflicting information consider the Sisu/Course/Moodle pages the primary source of information.

Aalto and Hanken economics students can enroll in their home university’s SISU! Further instructions can be found on the How to enroll page, also for other students.

Before taking and completing the course make sure that the credits can be counted towards your degree at your home university by checking which courses are included in your curriculum or by contacting your home university’s student/learning services.

  • To access the Moodle course area, use all the features and participate in the activities (assignments, discussions), you must have successfully registered for the course in Sisu and logged in with your UH user ID.
  • For more information on how to activate your UH user ID and register for a Moodle course area, click here.

The course is designed both as a stand-alone course in international trade theory and policy, and a foundation for further study of advanced international trade theory and international economics. The course covers the main topics in international trade and is organised in three major parts: introduction, trade theory and trade policy. In the beginning, the course provides an introduction to trade in the global economy highlighting key empirical facts of trade patterns. In the second part, the course deals with all major trade theories that cover areas including technology and trade (e.g., the Ricardian Model), gains and losses from trade (the specific-factors model), endowment and trade (the Heckscher-Ohlin model), the standard trade model. The course also covers new trade theories describing the importance of economies of scale and international location of production as well as how firms behave in the global economy in a world of competition. Then in the third part, the course will concentrate on trade policy issues. We will cover topics including offshoring of goods and services, tariffs and quotas under perfect and imperfect competition, infant industry protection and export policies in resource-based and hightech industries.

On successful completion of the course, students should be able to
(1) describe the assumptions and structure of standard models of international trade theory,
(2) use such models to analyse diverse real issues in international economics.
(3) specify the conditions under which trade is beneficial for individual economies and international community as well as identify winners and losers from trade,
(4) highlight the implications of trade on firm performance, productivity growth, and income distribution under various circumstances,
(5) understand the political economy of trade policy and how institutions and different trade policy instruments affect international trade,
(6) recognise the effects of international trade on economic development, international politics and the environment.
(7) discuss the causes and the resolutions of international trade disputes, and
(8) review the dynamics of world trading system and international coordination.