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Unit of study_

ECOS3006: International Trade

This unit of study provides a systematic analysis of the theory of international trade and trade policy. Initially differences between countries are emphasised as the source of trade and the gains from trade. Models that are examined include the Classical-Ricardian model, the Heckscher-Ohlin model and the Specific-Factors model. Next economics of scale and imperfect competition are introduced as sources of trade and gains from trade. The unit concludes with an examination of empirical studies aimed at testing trade theories. The analysis of trade policy begins with a discussion of the instruments of trade policy, in particular, tariffs and quotas and their effect on welfare. This discussion is then extended to the case of imperfect competition and strategic trade policy.

Code ECOS3006
Academic unit Economics
Credit points 6
Prerequisites:
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ECOS2001 or ECOS2901
Corequisites:
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None
Prohibitions:
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None

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

  • LO1. demonstrate skills in oral and written communication
  • LO2. demonstrate skills in problem solving
  • LO3. develop proficiency in critical thinking
  • LO4. demonstrate basic modelling skills
  • LO5. identify and intuitively explain the key issues in international trade theory and policy such as, for example, the impact of trade on efficiency and welfare
  • 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. confidently participate in public policy discussions and be ready to challenge some of the misconceptions regarding trade and globalisation.

Unit outlines

Unit outlines will be available 1 week before the first day of teaching for the relevant session.