ECON42140 International Trade

Academic Year 2022/2023

At the end of this course, students will have
1. gained understanding of the different theories that underpin research in international trade,
2. examined the effects of trade policies and how these effects have changed over time, and
3. presented and discussed a state-of-the-art research paper on the effects of trade

The module presents international trade theories from the "old", the "new", and the "new, new" trade literature. The module covers some of the main issues related to international economics such as its effects on labour, innovation, firms, and politics.

The first part of the course will provide an overview of the main trade theories (comparative advantage, “new” and “new new” trade theories, gravity, and firm heterogeneity). Using these models, the second part of the course analyses various questions arising in the context of international economics (labour and capital flows, environment, and innovation).

As prerequisites, students should have good knowledge in microeconomics and econometrics.

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Curricular information is subject to change

Learning Outcomes:

On successful completion of this module, students should be able to
1. demonstrate general knowledge and understanding of international trade concepts,
2. illustrate and highlight the effects of international trade,
3. understand the theoretical models that underpin the models,
4. read critically the empirical literature,
5. apply critical analysis to the topics of the module, and
6. review the relevant literature and evidence.

Indicative Module Content:

Part I: Theoretical toolkit and its empirical backup
1. “Old” trade theories: Comparative advantage: Technological differences; Comparative advantage: Different factor endowments
2. “New” trade theories: Intra-industry trade, monopolistic competition, and homogenous firms; New economic geography; New economic geography model
3. “New new” trade theories: Monopolistic competition and heterogenous firms;
4. Gravity: The gravity equation: the empirics of international trade

Part II: Policy issues and recent developments
1. Trading in jobs: Trade, (un)employment, wages, and inequalities
2. Trading in innovation
3. International factor movements: Migration, multinational firms, and investment
4. Politics and trade: Trade wars and talks

Student Effort Hours: 
Student Effort Type Hours
Lectures

24

Autonomous Student Learning

70

Total

94

Approaches to Teaching and Learning:
This module will be taught via lectures, student presentations and discussions. Assessments will require group work and critical writing, student presentations, and discussions. 
Requirements, Exclusions and Recommendations

Not applicable to this module.


Module Requisites and Incompatibles
Not applicable to this module.
 
Assessment Strategy  
Description Timing Open Book Exam Component Scale Must Pass Component % of Final Grade
Continuous Assessment: To facilitate the discussion of the papers presented in the second part of the course, students must read and prepare the paper being presented and prepare questions and comments. Throughout the Trimester n/a Pass/Fail Grade Scale No

10

Presentation: Presentation on paper assigned in beginning of the semester Throughout the Trimester n/a Alternative linear conversion grade scale 40% No

20

Examination: Final exam 2 hour End of Trimester Exam No Alternative linear conversion grade scale 40% No

70


Carry forward of passed components
No
 
Resit In Terminal Exam
Summer Yes - 2 Hour
Please see Student Jargon Buster for more information about remediation types and timing. 
Feedback Strategy/Strategies

• Feedback individually to students, on an activity or draft prior to summative assessment
• Feedback individually to students, post-assessment

How will my Feedback be Delivered?

How will my Feedback be Delivered? Before the in-class presentation of a research paper, students can also ask for an oral feedback about their draft presentation. Students can ask for an oral or written individual feedback about their final exam via email.