Dr Isabela Manelici (SAL.2.29)

This course is available on the BSc in Econometrics and Mathematical Economics, BSc in Economics, BSc in Economics and Economic History, BSc in Economics with Economic History, BSc in Environment and Sustainable Development with Economics, BSc in Environmental Policy with Economics, BSc in Geography with Economics, BSc in International Social and Public Policy and Economics, BSc in Mathematics and Economics, BSc in Mathematics with Economics, BSc in Philosophy and Economics, BSc in Philosophy, Politics and Economics and BSc in Politics and Economics. This course is available as an outside option to students on other programmes where regulations permit. This course is available with permission to General Course students.

Students must have completed Microeconomics II (EC2A1) or Microeconomics I (EC1A3) combined with Microeconomics II (EC2A3), or Microeconomic Principles I (EC201) or Microeconomic Principles II (EC202), or equivalent.

This course offers an introduction to international trade theory and develops the main tools for trade policy analysis. We start by studying the patterns of trade distinguishing between inter-industry and intra-industry trade flows. We then proceed to an in-depth analysis of the causes and the effects of those flows based on the concepts of absolute and comparative advantage, relative factor abundance and relative factor intensity, increasing returns to scale and imperfect competition. Finally, we discuss the gains and losses from trade, their distribution among people and firms, and their implications for the debate on trade liberalization versus protectionism.

This course is delivered through a combination of classes and lectures totalling a minimum of 25 hours in the Winter Term (WT). 15 hours of lectures and 9 hours of classes in the WT; 1 hour of classes in the Spring Term (ST)

Students are expected to complete a problem set weekly, two of which will be marked, and feedback provided.

Students can consult the textbook:

• Paul Krugman, Marc Melitz and Maurice Obstfeld; International Economics: Theory and Policy, 12th edition, Pearson. (Earlier editions are also relevant).

Exam (100%, duration: 2 hours, reading time: 15 minutes) in the spring exam period.