B026829 - INTERNATIONAL TRADE

English

globalization, slowbalization, models of trade, global value chains , offshoring, FDI etc

Feenstra, Robert C. and Alan M. Taylor (2017), International Economics, 4th edition, Worth Publisher ISBN-10: 1-319-06173-7; ISBN-13: 978-1-319-06173-9; Format: Paper Text, 464 pages

By the end of the course, students should be able to use a number of theoretical and empirical issues in order to answer questions such as: To what extent is globalization a new phenomenon? Is rising north-south trade responsible for increasing inequalities in the north? What are the causes and consequences of changes in the terms of trade for developing countries? (with a focus on food prices and raw materials) Where are we in the negotiation at WTO? Are services so different from manufacturing? What is the effect of offshoring on employment? And on productivity? How does migration fit into this picture? Are migrants complementary or substitutes to trade and offshoring? How-if- do exporting firms differ from multinationals? Is there a heterogeneity between exporters? And between foreign investors? How important are imported inputs for heterogeneous international firms? What kind of contracts do exporters sign with sourcing firms? Do institutions and cultural differences affect international specialization? To what extent? What has been the impact of Covid 19 on international firms? What role are sanctions playing for firms of sanctioned countries as well as for firms of sanctioning countries? The expected answer to these issues is both referring to the theoretical model that can be used and to the empirics.

Recommended: international economics (I level) (but the course will recap the basics) and a Math course (undergraduate level).

Lectures and group presentations

Written exam; could do a ppt (or essay) or have extra questions in the exam (extra topics, readings will be provided)

The first part of the course consists of traditional lectures (with the support of slides, book chapters and articles). The second half of the course includes student seminars. Students are required to read articles, comment on data and link data and theory.
Key topics include: •globalization/deglobalization: useful definitions; •statistical and economic indicators of globalization, specialization, imbalances; •Ricardo's model of International Trade (brief); •Hescker-Olin model; •imperfect competition models; •geography models; •movements of capital and workers; •offshoring and outsourcing; •FDI and multinational; •R&D internationalization; •migrations; •trade policies and international agreements.

sdg 4,9, 10