Lecture: INTERNATIONAL TRADE
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1 1 Prof. Dr. Dr. h. c. Karl-Heinz Paqué Chair of International Economics International Trade 0. Table of Content
2 2 Lecture: INTERNATIONAL TRADE Time: Place: Thursday, 9-13 h G22A-211 Canceled: Important: For updates on canceled lectures and additional lectures please check homepage!
3 3 OVERVIEW: 1 What Is International Trade About? 2 World Trade: Some Observations 3 Trade Theory I: Labour Productivity and Comparative Advantage: The Ricardian Model 4 Trade Theory II: Resources and Trade: The Heckscher-Ohlin Model 5 Trade Theory III: Selected Topics in a Standard Trade Model 6 Trade Theory IV: Imperfect Markets and Trade 7 Theory of International Factor Movements: Migration and Capital Flows 8 Trade Policy I: The Instruments 9 Trade Policy II: The Political Economy 10 Trade Policy III: Growth and Development 11 Trade Policy IV: Past and Current Issues 12 The Future: Theory and Policy
4 4 Literature: The lecture largely follows the structure and contents of the textbook by Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz, International Economics Theory and Policy, 10th Edition Older editions of the book can be used except if otherwise noted in the course of the lecture.
5 5 CONTENTS IN DETAIL: 1 What Is International Trade About? 2 World Trade: Some Observations 3 Trade Theory I: Labour Productivity and Comparative Advantage: The Ricardian Model 3.1 The Model 3.2 Gains From Trade 3.3 Comparative Advantage 3.4 Extended Model Versions 3.5 Transport Costs and Non-Tradable Goods 3.6 Empirical Evidence
6 6 4 Trade Theory II: Resources and Trade: The Heckscher-Ohlin Model 4.1 The Model 4.2 The Effects of Trade Relative Prices and the Pattern of Trade Trade and the Distribution of Income Factor Price Equalisation 4.3 Gains from Trade 4.4 Empirical Evidence 5 Trade Theory III: Selected Topics in a Standard Trade Model 5.1 The Model 5.2 Terms of Trade Changes 5.3 Biased Growth 5.4 International Transfers of Income 5.5 Import Tariffs and Export Subsidies 5.6 Another Device: Offer Curves
7 7 6 Trade Theory IV: Imperfect Markets and Trade 6.1 The Theory of Imperfect Competition Monopolistic Competition The Effect of Market Size 6.2 Heterogeneous Firms 6.3 Trade Costs 6.4 Dumping 6.5 External Economies of Scale 6.6 Economic Geography 7 Theory of International Factor Movements: Migration and Capital Flows 7.1 Labour Mobility 7.2 Borrowing and Lending Intertemporal Trade Comparative Advantage 7.3 Direct Foreign Investment
8 8 8 Trade Policy I: The Instruments 8.1 Partial Equilibrium Analysis of a Tariff 8.2 Costs and Benefits of a Tariff 8.3 Other Instruments of Trade Policy 8.4 General Equilibrium Analysis of a Tariff 8.5 Trade Policy in the Presence of Monopoly 8.6 The Effective Rate of Protection
9 9 9 Trade Policy II: The Political Economy 9.1 The Case for Free Trade 9.2 National Welfare Arguments Against Free Trade 9.3 Income Distribution and Trade Policy 9.4 Trade Negotiations and Agreements Some Theory and History General Agreement on Tariffs and Trade (GATT) World Trade Organization (WTO) 9.5 Preferential Trade Agreements Trade Diversion and Trade Creation Variants of Integration Europe: EU, EFTA, etc North America: NAFTA and USMCA The World: Bilateral Investment Treaties
10 10 10 Trade Policy III: Growth and Development 10.1 A Policy of Import Substitution Infant Industry Argument Protection of Manufacturing The Switch to Liberalization 10.2 A Policy of World Market Orientation Idea and Concept Reality: East Asian Growth Trade and Industrial Policy
11 11 11 Trade Policy IV: Past and Current Issues 11.1 Strategic Trade Policy The Idea in Theory Current Practice The Case of China 11.2 The Effects of Globalization Trade and Wages Social Standards Environmental Standards 11.3 Transatlantic Relations: CETA and TTIP 12 The Future: Free Trade or Protectionism?
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