To enable students to obtain a good understanding of the theory of international trade and trade policy. Students will acquire an appreciation of world trade and its phenomenal growth in recent decades, before developing an understanding of the classic models of trade theory and how to use such models to address policy issues. The module also equips students to gain an appreciation of the economic rationale behind labour migration and foreign direct investment by multinational corporations. In terms of the topic of trade policy, the module will develop in students the ability to critically analyse the economic effects of tariffs, antidumping duties and import quotas, and to combine the discussion with case studies such as the Common Agricultural Policy of the European Union. Finally, the module aims to provide students with an understanding of why countries join international trade agreements and how the World Trade Organisation (WTO) settles international trade disputes.
Principal Learning Outcomes
By the end of the module the student should be able to demonstrate general knowledge and understanding of international trade theory; demonstrate general knowledge and critical understanding of international trade policy; understand and manipulate simple economic models, both graphically and analytically; read critically the empirical literature, in the area of public policy; apply critical analysis to the topics of the module; review the relevant literature and evidence.
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.
- Pre or Co-requisites
- EC201 + EC202 or EC204.
- Not available to non-final year students on Economics-based degrees.
- Part-year Availability for Visiting Students
- Available in the Spring term only (1 x test - 12 CATS) and in the Spring and Summer terms together (1 x test and 1 x 2 hour exam – 15 CATS)
- Assessment Method
- Coursework (20%) + 2 hour exam (80%)
- Coursework Details
- One 50 minute test (20%)
- Exam Timing
Time Allowed: 2 hours
Answer ALL THREE questions in Section A (48 marks) and ONE question in Section B (52 marks). Answer Section A questions in one booklet and Section B questions in a separate booklet.
Approved pocket calculators are allowed.
Read carefully the instructions on the answer book provided and make sure that the particulars required are entered on each answer book. If you answer more questions than are required and do not indicate which answers should be ignored, we will mark the requisite number of answers in the order in which they appear in the answer book(s): answers beyond that number will not be considered.
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.