International Trade and Policy

ECON32191 International Trade and Policy 20 Semester 2 Undergraduate Level 3 Hei Sing Chan Unit coordinator Economics 1 FHEQ level (Framework for Higher Education Qualifications) ' Last part of a Bachelors ' European Credit Transfer & Accumulation System Rating : 10.0 This course unit studies how international trade affects the economy and how growth, inequalities, and organisations of firms are affected when a country opens up to trade. We will discuss political economy of trade policies and why international trade is usually a contentious topic among countries. By the end of the course unit, you will learn how to explain and contrast different trade models and explain real-life scenarios using different tools you learn in class. This course unit studies how international trade affects the economy. The unit is divided into three parts.<ul> <li>In part one, we review classical trade theories to explain what macro factors that explain why countries trade with one another, and its distributional impact on the economy (i.e., inequalities).</li> <li>In part two, we review modern trade theories to explain intra-industry trades and why some firms trade but not the others. In this part, we will also explain factors of foreign direct investments and outsourcing.</li> <li>In part three, we study the different economic reasons in which countries adopt trade policies. We study various forms of trade policies and discuss the role of political motives in shaping these policies.</li></ul> The aims of this course are to:<ol> <li>Study the basic facts of international trade flows.</li> <li>Discuss different international trade theories, their empirical evidence and policy implications.</li> <li>Introduce methods for trade policy analysis.</li></ol> At the end of this course unit. it is expected that you will be able to:<ol> <li>Understand the causes and effects of international trade.</li> <li>Evaluate the welfare impacts of trade policies.</li> <li>Demonstrate an understanding of various contemporary issues in trade, such as trade and growth, industrialisation, inequalities and global production structure.</li></ol> Analytical skills Understand the motivation from data and why we need different economic models. How to use existing models to understand past and current events in the world economy. Problem solving Group Work ProvisionalTopic 1: The Ricardian Model and Comparative Advantage  Topic 2: The Heckscher-Ohlin Model Topic 3: Trade and Inequalities: Is Free Trade a Rip-Off? Topic 4: Intra-Industry Trade and the Monopolistic Competition Models Topic 5: Heterogeneous Firms and the Organisation of Firms Topic 6: Trade Policy Instruments: Welfare Impacts and Political Economy  Synchronous activities (such as Lectures or Review and Q&A sessions, and tutorials), and guided self-study 0 Other 100% 30% Problem Sets70% Exam •       Feedback from problem sets.•       Tutorial feedback.•       Office hours.•       Revision sessions. ECON20501 Intermediate Microeconomic Theory 1 Pre-Requisite Compulsory ECON20021 Microeconomics 3 Pre-Requisite Compulsory ECON20001 Managerial Economics I Pre-Requisite Compulsory ECON30021 Microeconomics 3 Pre-Requisite Compulsory ECON30501 Pre-Requisite Compulsory ECON20001 OR ECON20501 OR ECON30501 OR ECON20021 OR ECON30021(ECON20001 OR ECON20501 OR ECON30501 OR ECON20021 OR ECON30021) Y <ul><li>Krugman, P., Obstfeld, M., and Melitz, M.J. 2022. International Trade: Theory and Policy (or equivalently, International Economics: Theory and Policy, Ch.1-12), 12th Edition, Pearson.</li><li>McLaren, J. 2013. International Trade, 1st Edition, John Wiley & Sons.</li></ul> 0 0 0 For every 10 course unit credits we expect students to work for around 100 hours. This time generally includes any contact times (online or face to face, recorded and live), but also independent study, work for coursework, and group work. This amount is only a guidance and individual study time will vary