ECON6023: Semester 1, 2023

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Units ECON6023 Semester 1 2023 [Normal day]

Unit of study_

ECON6023: International Trade

Semester 1, 2023 [Normal day] - Remote

Overview

This unit develops the modern theory of international trade and commercial policy and examines some empirical applications. Topics covered include competitive trade theory; comparative advantage and theories of international trade patterns; the gains from trade; empirical evidence and methodology; imperfectly competitive trade theory and economies of scale, differentiated products, and technology; analysis of the effects of tariffs and trade quotas upon trade under competitive and imperfectly competitive market structures; the formation and design of regional trade agreements and the strategic behaviour of multinational enterprises. It will be suitable for those with an interest in international trade and business issues as well as those who may wish to pursue PhD research in these areas. It will be taught at a graduate level and so presumes knowledge of advanced undergraduate microeconomics.

Unit details and rules

Unit code	ECON6023
Academic unit	Economics
Credit points	6
Prohibitions ?	None
Prerequisites ?	ECON6001 or ECON6701
Corequisites ?	None
Assumed knowledge ?	None
Available to study abroad and exchange students	Yes

Teaching staff

Coordinator	Vladimir Tyazhelnikov, vladimir.tyazhelnikov@sydney.edu.au

Type	Description	Weight	Due	Length
Assignment	Written research report Research report	40%	Week 12 Due date: 16 May 2023 at 18:00 Closing date: 16 May 2023	2000 words
Outcomes assessed:
Skills-based evaluation	Assessment Open and multiple-choice questions	60%	Week 13 Due date: 23 May 2023 at 18:00 Closing date: 23 May 2023	1.5 hours
Outcomes assessed:

Assessment summary

The research report will be of (maximum) length 2000 words. The aim is to choose a top-ranked academic economics journal, which theoretically models one of the following topics:

Trade in intermediate inputs, i.e. “outsourcing”
Political economy of international trade
The impact of trade on the environment

You will discuss and critically analyse the paper in detail, showing that you understand: (i) the intuition underpinning its main results and (ii) the limitations of the model. You will place the paper in the context of the relevant literature, i.e. explain the nature and significance of its contribution (you will have to read other papers to do this). Finally, you will suggest extensions to the work undertaken in the paper.

Before starting work on this project, you need to show me the paper that you plan to discuss so that I can verify its suitability.

Detailed information for each assessment can be found on Canvas.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy (Schedule 1).

As a general guide, a High Distinction indicates work of an exceptional standard, a Distinction a very high standard, a Credit a good standard, and a Pass an acceptable standard.

Result name	Mark range	Description
High distinction	85 - 100
Distinction	75 - 84
Credit	65 - 74
Pass	50 - 64
Fail	0 - 49	When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see sydney.edu.au/students/guide-to-grades.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

Deduction of 5% of the maximum mark for each calendar day after the due date.
After ten calendar days late, a mark of zero will be awarded.

Academic integrity

The Current Student website provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

You may only use artificial intelligence and writing assistance tools in assessment tasks if you are permitted to by your unit coordinator, and if you do use them, you must also acknowledge this in your work, either in a footnote or an acknowledgement section.

Studiosity is permitted for postgraduate units unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission.

Learning support

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

Weekly schedule

WK	Topic	Learning activity
Week 01	Introduction	Seminar (3 hr)
Week 02	Technology and trade: the Ricardian model	Seminar (3 hr)
Week 03	Technology and trade: the Ricardian model	Seminar (3 hr)
Week 04	Resources and trade: the HeckscherOhlin model	Seminar (3 hr)
Week 05	Resources and trade: the HeckscherOhlin model	Seminar (3 hr)
Week 06	Economies of scale, imperfect competition and trade	Seminar (3 hr)
Week 07	Economies of scale, imperfect competition and trade	Seminar (3 hr)
Week 09	Offshoring	Seminar (3 hr)
Week 10	International trade policy	Seminar (3 hr)
Week 11	International trade policy	Seminar (3 hr)
Week 12	International trade agreements	Seminar (3 hr)
Week 13	Revision and Completion of Unfinished Topics	Seminar (3 hr)

Attendance and class requirements

Attendance: According to Faculty Board Resolutions, students in the Faculty of Arts and Social Sciences are expected to attend 90% of their classes. If you attend less than 50% of classes, regardless of the reasons, you may be referred to the Examiner’s Board. The Examiner’s Board will decide whether you should pass or fail the unit of study if your attendance falls below this threshold.
Lecture recording: Most lectures (in recording-equipped venues) will be recorded and may be made available to students on the LMS. However, you should not rely on lecture recording to substitute your classroom learning experience.
Preparation: Students should commit to spend approximately three hours’ preparation time (reading, studying, homework, essays, etc.) for every hour of scheduled instruction.

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

All readings for this unit can be accessed on the Library link available on Canvas or on 2-hour special reserve at Fisher Library.

Required texts:

Krugman, P. R., M. Obstfeld and M. J. Melitz (2018) International Economics: Theory and Policy, 11th global ed., Pearson.
Feenstra, R. C. (2004 or 2015) Advanced International Trade: Theory and Evidence, Princeton University Press.

The Feenstra text is more advanced and will form the bulk of my lecture notes. My lecture notes are very detailed and so should be sufficient to learn the more technical material, but you are encouraged to refer to the Feenstra textbook for additional assistance if required.

Students considering undertaking PhD studies in International Economics, should think seriously about purchasing the book by Feenstra as well. The Krugman text provides a practitioner’s
treatment.

Lecture notes will be made available on Canvas before each lecture. Solutions to problem sets and exams will also be made available on Canvas. Canvas will also be used to make general announcements
to the class. I will assume that you will check the Canvas site for this unit at least once every day. You should make this a habit.

Topic 1: Introduction

Krugman: Chapters 1, 2.

Topic 2: Technology and Trade: The Ricardian Model

Krugman: Chapter 3.

Feenstra: Chapter 1.

Topic 3: Resources and Trade: The HeckscherOhlin Model

Krugman: Chapters 4, 5 and 6.

Feenstra: Chapters 1, 2 and 3.

Topic 4: Economies of Scale, Imperfect Competition and Trade

Krugman, Chapters 7 & 8.

Feenstra: Chapter 5.

Topic 5: International Trade Policy

Krugman: Chapters 9, 10, 11 and 12.

Feenstra: Chapter 5.

Topic 6: International Trade Agreements

Krugman: Chapter 9.

Feenstra: Chapter 6.

Learning outcomes

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

Outcomes
Graduate qualities

At the completion of this unit, you should be able to:

LO1. demonstrate skills in oral and written communication (through class discussions, tests and essay)
LO2. demonstrate skills in problem solving (through tutorial questions and tests)
LO3. demonstrate critical thinking (through class discussions, tests, tutorial questions and essay)
LO4. demonstrate basic modelling skills (through tutorial questions and tests)
LO5. identify and intuitively explain the key issues in international trade theory and policy
LO6. understand the importance of assumptions in the economic modelling of international trade
LO7. distinguish between the efficiency implications and distributional consequences of trade and trade policy
LO8. understand the role of politics in trade and vice versa
LO9. assess the costs and benefits of trade policy from an economic point of view
LO10. feel sufficiently informed to confidently participate in public policy discussions and be ready to challenge some of the misconceptions regarding trade and globalisation.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1	Depth of disciplinary expertise Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.
GQ2	Critical thinking and problem solving Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.
GQ3	Oral and written communication Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.
GQ4	Information and digital literacy Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.
GQ5	Inventiveness Generating novel ideas and solutions.
GQ6	Cultural competence Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.
GQ7	Interdisciplinary effectiveness Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.
GQ8	Integrated professional, ethical, and personal identity An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.
GQ9	Influence Engaging others in a process, idea or vision.

Outcome map

Learning outcomes	Graduate qualities
Learning outcomes

Responding to student feedback

This section outlines changes made to this unit following staff and student reviews.

No changes have been made since this unit was last offered.

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.

Current students

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Disclaimer

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