This course introduces the basis, consequences and policies of international trade and offers the students basic ability to analyze important problems in this subject. Generally speaking, it introduces micro-economic issues relevant to the economic relationships among countries and covers international trade theories and policies. These theories will help us understand the reasons why countries trade goods and services and firms invest abroad, the determinants of trade patterns and the impacts of (gains and losses from) trade on welfare and economic development. We will study several models of international trade and use them to examine trade policy. The course essentially addresses the following questions. Who trades what with whom? What are the effects of trade on welfare and the income distribution? Why do countries implement protectionist trade policies? What are the effects of barriers to trade and economic integration? What is the role of the WTO? This course is designed not only as an individual course in international trade, but also as a foundation for further study of this subject.
The course covers the main topics in international trade and is organized in three major parts: introduction, trade theory and trade policy. In the beginning, we will start with an introduction to trade in the global economy highlighting key empirical facts of trade patterns. In the second part, we will discuss major trade theories that cover areas including technology and trade (the Ricardian Model), gains and losses from trade (the specific-factors model), endowment and trade (the Heckscher-Ohlin model), the standard trade model, economies of scale and international location of production and how firms behave in the global economy in a world of competition. Then in the third part, the course will concentrate on trade policy issues. We will cover topics including offshoring of goods and services, tariffs and quotas under perfect and imperfect competition, infant industry protection and export policies in resource-based and high-tech industries.
This optional lecture course is open for all students who want to know more about fundamentals of international trade. Basic knowledge in the principles of microeconomics and macroeconomics would be helpful.
Upon successful completion of the course, students should be able to (1) learn modern trade theories and explore the empirical patterns of international trade, (2) specify the conditions under which trade is beneficial for individual economies and international community as well as identify winners and losers from trade, (3) highlight the implications of trade on firm performance, productivity growth, and income distribution under various circumstances, (4) investigate the objectives and impacts of trade and industrial policies, (5) discuss the causes and the resolutions of international trade disputes, and (6) review the dynamics of world trading system and international coordination.
Course materials are available on Moodle.
• Krugman, P. R., Obstfeld, M. and Melitz, M. J. (2018). “International Economics: Theory and Policy”, 11th edition, Pearson, Chapters 1-12.
Other useful readings
• Appleyard, D. R., Cobb, S. L., Field, A. J. (2016). “International Economics”, 9th edition, McGraw-Hill.
•Husted, S. and Melvin, M. “International Economics”, Addison Wesley Longman.
•Carbaugh, R. J. (2018). “International Economics”, 17th Edition Thompson South-Western.
Alternate editions of the textbook may be used and there are small differences between editions. Please check Moodle prior to class for course announcements, lecture slides, and supplementary reading materials. Please note that reading of the lecture materials does not substitute for attending classroom sessions. Presence in lectures must be as per the rules of the faculty. The lecture notes (slides and handouts) as well as the readings (might also be given later in some cases) are part of the materials tested in the final exam.
Completion methods of the course include lectures, one exercise set (30%) and one final written exam (70%) at the end of the course lectures. You will actually be given two exercises, the first one of which will be graded. This exercise will be given after the 8th lecture and your answers are due to be handed on or before the last lecture. The second exercise will be given after the 11th lecture. The second one is basically important for the final exam. You may return it before the 12th lecture, but it will not be graded. Students need to obtain at least 50% marks individually both in the exercise part and the final exam. There might be assigned readings for lecture sessions. The final written examination will be based on the course textbooks and lecture materials. Learning in the course will be finally evaluated on a scale of 1-5.
Attendance and class participation
Attendance and class participation are integral parts of the course. Missing too many classes is therefore discouraged and your attendance to each lecture is highly recommended. Your active class participation may affect my informal evaluation of your performance, and will be a decisive factor when your grade lies on the borderline between two levels. Plagiarizing assignments, copying another student’s work and late submission of exercises are, as always, subject to penalty.
Taloustieteen kandiohjelma vastaa opintojaksosta. Taloustieteen kandiohjelman opiskelijat voivat sisällyttää opintojakson taloustieteen erikoiskursseja -opintokokonaisuuteen. Opintojakson voivat suorittaa myös muiden koulutusohjelmien opiskelijat ja sen voi sisällyttää taloustiede sivuaineena - opintokokonaisuuteen.
Opintojakson tavoitteena on perehtyä johonkin kansainvälisen talouden erikoisalaan. Opintojakson suoritettuaan opiskelija tuntee ko. kansainvälisen talouden erikoisalan keskeiset tutkimusaiheet, kysymyksenasettelut ja tutkimustulokset. Lisäksi opintojakso auttaa erikoisalaan liittyvän kandidaatintutkielman kirjoittamisessa.
Opintojakson voi suorittaa missä tahansa opintojen vaiheessa. Opintojaksoa ei opeteta jokaisena lukuvuonna.
Opintojaksolla käsitellään jotain kansainvälisen talouden erikoisalaa. Opintojakson suoritettuaan opiskelija tuntee ko. kansainvälisen talouden erikoisalan keskeiset tutkimusaiheet, kysymyksenasettelut ja tutkimustulokset.
Opintojaksosta saatava arvosana perustuu loppukuulusteluun. Opintojakso arvostellaan asteikolla 0-5 tai hyväksytty/hylätty.
Opintojakso toteutetaan luentokurssina