International Trade: Theory, Policy, Environment and Development
Full course description
In principle, international trade and factor movements are advantageous for the citizens of countries. Households can buy goods and (factor) services where they are cheaper. Firms can specialize in goods in which they are better than their international competitors, making them cheaper again for households. This is the basic idea behind trade liberalization, including trade in labour and capital services. However, there are disadvantages as well, which are well known not to overthrow the advantages if taken into account properly by economic policy. Many of them are not taken into account though: they are mostly ignored in the trade negotiations and abused as arguments in favour of protectionism. This course teaches the basics needed to understand these conflicts and find sophisticated solutions. Parallel to this course also starts our skills-training series in foreign policy: a negotiation skills training that culminates with a multi-day simulation of international negotiations.
Acquisition of broad orientational knowledge to understand international economic flows and their effects on national economies. Practicing data analysis incl. regression and presentation skills. Students will also acquire skills in planning and undertaking diplomatic negotiation in a simulated environment.
Basic microeconomics; Regression Analysis I; Regression Analysis II.
- Krugman, P.R., M. Obstfeld and M.J. Melitz, International Economics, 10th edition, 2014.