Dr Veronica Rappoport-Redondo NAB 5.29

This course is compulsory on the MSc in Management (1 Year Programme). This course is not available as an outside option.

In this course we study two key components of the process called 'globalisation'. First, we consider the negotiation, implementation and implications of international trade agreements. These include the World Trade Organisation and the fast-growing web of regional trade agreements. Second, we look at the process of globalisation at the level of industries, firms and nations. We seek a solid understanding of the external, economy-wide factors that affect the performance and management of firms in today's global economy. The course relies on recent theoretical and empirical research. Topics include the changing structure of industries, the response of companies, both those based in the advanced industrial countries and those based in emerging markets, to increasing international competition; and the differences between countries in their institutions and policies.

Course topics:

1) Globalisation: trends in the global economy, overview of their causes and effects

2) The workings, accomplishments and shortcomings of the GATT/WTO system

3) Trade barriers: causes and consequences of restrictions to international trade

4) The economics and politics of international trade agreements

5) Implications of trade agreements for national and multinational firms

6) Location of Production: Theory of Comparative Advantages

7) Location of Production: Factor Endowments across countries

8) Location of Production: Testing empirically the predictions of the theory

9) Location of Production: Empirical Analysis, institutions as a source of competitive advantage

10) Foreign Direct Investment and International Contracts

10 x 180 minute seminars in the period after exams and summer term

Students will be expected to produce 2 problem sets in July.

Giorgio Barba Navaretti & Anthony J Venables, Multinational Firms in the World Economy, Princeton, 2004

Robert Feenstra and Alan Taylor, International Economics, Worth Publishers, 2008

Kyle Bagwell and Robert W. Staiger, "The Economics of the World Trading System," MIT Press, 2004

The World Trade Organisation, "The WTO and preferential trade agreements: From co-existence to coherence," World Trade Report, 2011.

Project (40%) in August.
Take home exam (60%).