Economics
 

International Trade Theory and Applications

International Trade Theory and Applications
Microeconomic analysis of why nations trade, who wins and loses from trade, and the costs and benefits of various trade policies.
ECON
458
 Hours3.0 Credit, 3.0 Lecture, 0.0 Lab
 PrerequisitesECON 388; or ECON 380 & POLI 328
 TaughtFall Contact Department, Winter Contact Department, Spring Contact Department, Summer Contact Department
 ProgramsContaining ECON 458
Course Outcomes: 

Econ 458 students will be able to

  1. Discuss why all kinds of nations-rich and poor, large and small-gain from international trade.
  2. Demonstrate an understanding of comparative advantage and how it creates gains from trade.
  3. Analyze the Ricardian model of trade and thereby learn how different technologies in different nations create comparative advantage and gains from trade.
  4. Analyze the Heckscher-Ohlin model of trade and thereby learn: 1) How different factor endowments in different nations create comparative advantage and gains from trade, and 2) Why some people lose from trade even though nations as a whole gain from trade.
  5. Discuss economies of scale and how they can generate gains from trade.
  6. Discuss how trade generates extra gains by reducing market power.
  7. Demonstrate an understanding of the main causes and effects of direct foreign investment.
  8. Demonstrate an understanding of the main causes and effects of international migration.
  9. Discuss how various trade policies affect national welfare and why such policies help some while hurting others.
  10. Discuss the politics of trade.