International Economics

• Credit value: 30 credits at Level 5
• Convenor and tutor: Michael Pandazis
• Assessment: a three-hour examination (80%) and coursework (20%)

A sound understanding of models of trade, the gains from trade and the consequences of trade and globalisation is an essential element in the economics toolkit.

In this module we explore different causal explanations for trade (comparative advantage, increasing returns to scale, trade in intermediate goods and other explanations, etc), determinants of the pattern of trade, and trade’s effect on factor payments. You will develop a sound understanding of trade policy and its political economy.

Indicative syllabus

• Introduction and an overview of world trade
• Comparative advantage and Ricardian Model
• Specific Factors Model and the effect of trade on the income distribution
• Heckscher-Ohlin Model
• The Standard Trade Model
• External economies and the location of production
• The instruments of trade policy
• Trade policy in developing countries
• Controversies in trade policies

By the end of this module, you will be able to:

• explain the major models of international trade, its causes and welfare effects
• articulate the role of strategic trade policy and commercial policy
• devise and conduct empirical tests of trade theory.