HACETTEPE UNIVERSITY
FACULTY OF ECONOMICS AND ADMINISTRATIVE SCIENCES
DEPARTMENT OF INTERNATIONAL RELATIONS
INR 285 INTERNATIONAL TRADE THEORY AND POLICY
2011-2012FALL SEMESTER
Class Time:
Place:
Lecturer: Itır Özer, Ph.D.
Office Hours:
Phone: 297 81 11
E-mail:
Text: Krugman, P.R. and M.Obstfeld, International Economics, Theory and Policy, Eight edition, Addison Wesley, 2009.
Suggested Text: Kreinin, E. M., International Economy: A Policy Approach, Eight Edition, The Dryden Press, 1998.
Course Objectives: This course aims to explain the causes and effects of international trade. It explores why nations trade, the gains from trade, theories of comparative advantage based on labor productivity and natural resources, new trade theories, the instruments of trade policy, the political economy of trade policy, trade policy in developing countries and controversies in trade policy.
Course Requirements: There will be one midterm examination and a comprehensive final examination (the dates of the exams are to be announced in due course). The midterm exam will account for 40 and final exam 60 % of the final grade. You are also required to get at least 50 out of 100 in the final exam, no matter what your grades were in the midterm.
Week1.
Introduction
What Is International Economics About?
World Trade: An Overview
Weeks 2. and 3.
Labor Productivity and Comparative Advantage: The Ricardian Model
Comparative Advantage
Misconceptions about Comparative Advantage
Weeks 4. and 5.
Resources, Comparative Advantage, and Income Distribution
A Model of a Two-Factor Economy
Effects of International Trade Between Two-Factor Economies
The Political Economy of Trade
Weeks 6. and 7.
The Standard Trade Model
A Standard Model of a Trading Economy
International Transfers of Income
Week 8. Midterm Exam
Weeks 9. and 10.
Economies of Scale, Imperfect Competition, and International Trade
Economies of Scale, International Trade, and Market Structure
External Economies and International Trade
Weeks 11. and 12.
International Factor Movements
International Labor Mobility
International Borrowing and Lending
Direct Foreign Investment and Multinational Firms
Weeks 13. and 14.
The Instruments of Trade Policy
Basic Tariff Analysis
Other Instruments of Trade Policy
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