EC336: International Trade

Dennis Novy
Module Leader

15 CATS - Department of Economics

Summer Module

Spring Module

Principal Aims

This module provides students with a thorough understanding of the theory and the empirics of international trade. You will study theoretical models of international trade including the famous Ricardian model of comparative advantage as well as the effects of tariffs, free trade agreements and custom unions. You will also study empirical applications such as the long-term evolution of globalisation since the 19th century and global supply chains in manufacturing. You will gain skills and techniques to analyse problems from a mathematical, graphical and intuitive perspective applying your knowledge to real-world scenarios.

Principal Learning Outcomes

Subject knowledge and understanding:...demonstrate general knowledge and understanding of international trade theory. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, classes with problem sets, and independent study. The summative assessment methods that measure the achievement of this learning outcome are: Examination.

Subject knowledge and understanding:...demonstrate general knowledge and critical understanding of international trade policy. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, classes with problem sets, and independent study. The summative assessment methods that measure the achievement of this learning outcome are: Examination.

Key skills:...understand and manipulate simple economic models, both graphically and analytically. Read critically the empirical literature, in the area of public policy. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, classes with problem sets, and independent study. The summative assessment methods that measure the achievement of this learning outcome are: Examination.

Cognitive skills:...apply critical analysis to the topics of the module. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, classes with problem sets, and independent study. The summative assessment methods that measure the achievement of this learning outcome are: Examination.

Professional skills:...review the relevant literature and evidence. The teaching and learning methods that enable students to achieve this learning outcome are: Classes with problem sets, and independent study. The summative assessment methods that measure the achievement of this learning outcome are: Examination.

Syllabus

The module will typically cover the following topics:

The context of world trade and its phenomenal growth in recent decades; Classic Models of Trade Theory, including the Ricardian theory of comparative advantage; the Heckscher–Ohlin model and the effect of international trade on income distribution, and more recent trade models incorporating economies of scale, imperfect competition and product differentiation; the economic rationale behind labour migration and foreign direct investment by multinational corporations; trade policy and the analysis of the economic effects of tariffs, antidumping duties and import quotas, combining the discussion with case studies; the debate on globalisation and the connections with environmental and labour standards enter the debate; and why countries join international trade agreements and how the World Trade Organisation (WTO) settles international trade disputes.

Context

Optional Module

GL11 - Year 3, GL12 - Year 4, L1P5 - Year 1, L1PA - Year 1, LM1D (LLD2) - Year 3, LM1D (LLD2) - Year 4, V7ML - Year 3, V7MM - Year 4, LA99 - Year 3, R9L1 - Year 4, R3L4 - Year 4, R4L1 - Year 4, R2L4 - Year 4, R1L4 - Year 4, L1L8 - Year 3, L1CA - Year 3, L1CB - Year 4

Pre or Co-requisites

EC201-30 Macroeconomics 2 AND EC202-30 Microeconomics 2 OR

EC204-30 Economics 2

Summary:

Modules: (EC201-30 and EC202-30) and EC204-30

Assessment

Assessment Method: Coursework (20%) + Examination (80%)
Coursework Details: Examination (80%) , Test (20%)
Exam Timing: Summer

Exam Rubric

Time Allowed: 2 Hours

Read all instructions carefully - and read through the entire paper at least once before you start entering your answers.

There are TWO sections in this paper. Answer ALL questions in Section A (48 marks in total) and ONE question in Section B (52 marks).

Answer each whole question in a separate booklet.

Approved scientific (non-graphical) pocket calculators are allowed.

You should not submit answers to more than the required number of questions. If you do, we will mark the questions in the order that they appear, up to the required number of questions in each section.

Previous exam papers can be found in the University’s past papers archive. Please note that previous exam papers may not have operated under the same exam rubric or assessment weightings as those for the current academic year. The content of past papers may also be different.