Bachelor
2022/2023
International Trade
Category 'Best Course for Broadening Horizons and Diversity of Knowledge and Skills'
Category 'Best Course for New Knowledge and Skills'
Type:
Elective course (Economics)
Area of studies:
Economics
Delivered by:
Department of Theoretical Economics
Where:
Faculty of Economic Sciences
When:
4 year, 1, 2 module
Mode of studies:
offline
Open to:
students of all HSE University campuses
Instructors:
Alexander Tarasov
Language:
English
ECTS credits:
6
Contact hours:
56
Course Syllabus
Abstract
The purpose of this course is to introduce students into the classical and modern theories of international trade. In particular, I am going to address three main questions: (i) What are the patterns of trade we observe in the real world (who sells what to whom?) and how can we explain them? (ii) If international trade is welfare improving, can we say something about the magnitude of these gains from trade? (iii) What is the effect of different trade policies on country’s welfare? The course will be divided into several parts. In the first part, we will study the classical trade theories based on the principle of a comparative advantage, which is originated to Ricardo. In the second part, we will talk about the, so called, new trade theory that was developed by Paul Krugman (he won a Nobel Prize for this theory) and, then, Elhanan Helpman among others. The third part will be devoted to the analysis of various instruments of trade policy under different assumptions for the market structure. We will try to understand which policy is beneficial for country’s welfare and in which cases. In the fourth part, we will try to understand the magnitude of the welfare gains. This part of the course will be based on recent seminal trade papers. Specifically, we will focus on the quantitative macro approach to understanding the size of the gains from trade. In addition, we consider a study based on a trade natural experiment. There will be also a part of the course that you will study on your own using the online course on International Trade (which is specified later). Finally, we will discuss some assorted topics in trade.
Learning Objectives
- to prepare students for future careers in policy and research that require understanding of the global economic processes
- to develop a critical understanding of economic theory, empirical evidence and key phenomena relevant to the role of international trade in a globalized world
- to introduce the key models economists use to think about international trade and build understanding through math, graphs and economic intuition
- to confront the discussed models with empirical data and anecdotal evidence
Expected Learning Outcomes
- be familiar with the Krugman model that explains trade between similar countries
- be familiar with the main trade models that explain trade between different countries
- develop critical thinking about economic matters related to international trade
- understanding the approaches used to measure the gains from trade
- understanding the implications of different trade policies for economic well-being of different agents: consumers, firms, the government
- understanding the role of multinational companies, foreign direct investment, international offshoring in a globalized world
Course Contents
- Comparative Advantage and Trade
- Increasing Returns To Scale and Trade
- The Magnitude of the Gains from Trade
- International Trade Policy Under Perfect Competition
- Different Consequences of International Trade
- Assorted Topics in International Trade
Bibliography
Recommended Core Bibliography
- International economics : theory and policy, Krugman, P. R., 1997
- International economics : theory and policy, Krugman, P. R., 2015
- Robert C. Feenstra. (2015). Advanced International Trade: Theory and Evidence Second Edition. Princeton University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.pup.pbooks.10615
Recommended Additional Bibliography
- Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2018). International Economics: Theory and Policy, Global Edition (Vol. Eleventh edition). New York: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1649946