Econ 4800-010: International Trade

Georgia State University

Description:

The course seeks to analyze the theories of trade and empirical verification of these theories. It tries to understand the relations between welfare and trade, relationship of nontariff and tariff barriers to trade, relationship between trade and growth, common markets, historical developments of global trade etc. New trade theories are studies and examined in class lectures. The value of David Ricardo's contributions are studied, the economic features of closed and open economies and trade benefits, its effects on production, consumption or income distribution are all studied.

Course Objectives

• Understanding the important facts about international trade.


• Identification of and description of the gravity model in world trade.


• Understanding of concept of Comparative Advantage and the determinants.


• Understanding applications of Ricardian-Heckscher-Ohlin models.


• Identification of trade benefits


• Understanding the standard trade models and ways in which trade patterns are formed through both supply and demand factors.


• Understanding implications of imperfect competition and improving returns to scale in models of world trade.


• Analyzing costs and gains of trade protection.


• Explaining how world trade agreements promote trade.


• Understanding issues that have been raised through preferential trade agreements.


• Identifying labor mobility causes between countries and the theories which explain the existence of multinational businesses.