47731 - International trade

Learning outcomes

The course is divided in four parts. The aim of the first part is to introduce students to the debate on globalization from the viewpoint of international trade in goods and services. The aim of the second and third parts is to give students a better understanding of the causes and consequences of international trade, and of the effects of trade policies respectively. The aim of the fourth part is to equip students with the main approaches to the analysis of international factor movement and multinational operations, and to discuss the role of the World Trade Organization. Upon completing the course students will have acquired an theoretical framework to understand the complex issues raised by the economic interdependence of nations and to analyze them in a systematic way.

Course contents

1. Globalization and its discontents

a) Key concepts and key facts

b) Opposite views

2.   Cause and Consequences of International Trade

         a)   North-South Trade: The Comparative Advantage Theory             

               - The Ricardian Model

               - The Specific Factors Model

               - The Factor Proportions Model

         b)     North-North Trade: Economies of Scale and Imperfect Competition

3.   Trade Policy

           a)  The Instruments of Trade Policies

           b)  The Political Economy of Trade Policies

4.   International Factor Movements, Globalization, and Developing Countries

           a)   Foreign direct investment and migration

           b)   Offshoring, outsourcing, and licensing

           c)   Trade policy in developing countries

           d)  Controversies about the WTO and globalization (intellectual property rights, labor standards, trade and environment)

Readings/Bibliography

P. Krugman, M. Obstfeld, M. Melitz, "International Trade: Theory and Policy”, 10th Edition, Pearson, 2014.

R. Feenstra, A. Taylor, "International Economics", 3rd Edition, Macmillan, 2013.

Further Readings:

R. Freeman, "Are your Wages Set in Beijing?", Journal of Economic Perspectives 9(3), 15-32, 1995.

J..Markusen, J. Melvin, W. Kaempfer, K. Maskus , "International trade, Theory and Evidence", McGraw-Hill, 1995.

W. Martin, K. Maskus, "Core Labor Standards and Competitiveness: Implications for Global Trade Policy", Review of International Economics, 9(2), 317-328, 2001.

K. Maskus, "Intellectual Property Rights in the Global Economy", Institute for International Economics, 2000 (chapter 3).

G.B. Naveretti, A.J. Venables, et al., "Multinational Firms in the World Economy", Princeton University Press, 2006. 

H. Nordstrom, S. Vaughan, "Trade and Environment: Special Studies 4", World Trade Organization Report, Geneva, 1999 (chapter 3). available online: http://www.wto.org/english/tratop_e/envir_e/environment.pdf

P. Samuelson, "Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization", Journal of Economic Perspectives 18(3), 135-146, 2004. 

P. Krugman, M. Obstfeld,  " Study Guide" (solutions to exercises in the book and additional exercises)

Teaching methods

During the 60 teaching hours, respective arguments will be confronted in the order indicated in the program. After the presentation of the underlying theory behind the topic under study, the political economy applications of each and relevant exercises will be carried out.

Assessment methods

The course will be concluded by a written examination.

Teaching tools

Lectures, exercises, presentations.

Links to further information

http://www2.dse.unibo.it/naghavi/teachings2014c.html

Office hours

See the website of Alireza Jay Naghavi

See the website of Gianmarco Ireo Paolo Ottaviano