An introduction to international trade

Course Description

The course on International Trade is designed to provide you with an introduction to the theories of international trade as well as global trade governance. The goal of the module is to provide you with the basic understanding of why countries trade, how they gain from trade, the classical and modern arguments for and against free trade, as well as the controversies surrounding the governance system and policies that guide global trade. You will come across concepts such as Mercantilism, classical theories, new trade theories, tariffs, WTO and international capital movements.

Learning Outcomes

On completion of the course, it is hoped that students will be able to:

• Demonstrate familiarity with some central themes and issues in the economic theories of international trade.
• Demonstrate the understanding of the difference between the theory of absolute advantage and the theory of comparative advantage
• Be able to analyse the relevance of the theory of comparative advantage in the contemporary economic circumstances.
• Distinguish and critically analyse the main arguments for protection and conversely be able to critically evaluate the relevance and realism of arguments for free trade.
• Be able to critically analyse the reasons why most economists today support free trade; and list circumstances under which selected protection might raise a country's welfare.
• Be able to critically analyse key issues surrounding the global trade governance and the calls for the reform of the World Trade Organization.

Table of contents

CHAPTER ONE:  Trade protectionism and global economic crisis

CHAPTER TWO: Protectionism Versus Free Trade: Classical arguments

CHAPTER THREE:  Protectionism Versus Free Trade: Modern arguments

CHAPTER FOUR:  Protectionism Versus Free Trade: Global Trade Governance