BAEcon Economics / Course details
Year of entry: 2018
Course unit details:
International Trade and Policy
|Unit level||Level 3|
|Teaching period(s)||Semester 1|
|Offered by||School of Social Sciences|
|Available as a free choice unit?||Yes|
See course Blackboard pages.
|Unit title||Unit code||Requirement type||Description|
|Managerial Economics I||ECON20000||Pre-Requisite||Compulsory|
|Managerial Economics I (10cp)||ECON20000||Pre-Requisite||Compulsory|
Students must have taken at least one of the following to be able to take this course unit (compulsory Pre-Requisite):
- ECON20000 or
The aims of this course are to:
- Study the basic facts of international trade flows.
- Discuss different international trade theories, their empirical evidence and policy implications.
- Introduce methods for trade policy analysis.
At the end of this course unit. it is expected that you will be able to:
- Understand the causes and effects of international trade.
- Evaluate the welfare impacts of trade policies.
- Demonstrate an understanding of various contemporary issues in trade, such as trade and growth, industrialisation, inequalities and global production structure.
Lecture 1: Facts on Inter-Industry Trade and the Ricardian Model.
Lecture 2-3: The Heckscher-Ohlin Model.
Lecture 4: The Instruments of Trade Policy.
Lecture 5: Facts on Intra-Industry Trade and the Monopolistic Competition Models.
Lecture 6: Heterogeneous Firms and the Organization of Firms.
Lecture 7-8: Gravity Model and its Application on Brexit.
Teaching and learning methods
Lectures and exercise classes.
- Analytical skills
- Understand the motivation from data and why we need different economic models. How to use existing models to understand past and current events in the world economy.
- Problem solving
- Mid-Term Exam - structured questions; answer 1 compulsory question and 1/3 optional questions in 1.5 hours (25%).
- Final Exam - structured questions; answer 1/2 questions in 50 minutes (75%).
- Weekly problem sets.
- Class feedback.
- Office hours.
- Revision sessions.
- Krugman, P., Obstfeld, M., and Melitz, M.J. 2015. International Trade: Theory and Policy (or equivalently, International Economics: Theory and Policy, Ch.1-12), 10th Edition, Pearson.
- Antràs, P.. 2015. Global Production: Firms, Contracts, and Trade Structure, Princeton University Press.
Detailed reading list will be posted on the course website.
|Scheduled activity hours|
|Assessment written exam||1.5|
|Practical classes & workshops||7|
|Independent study hours|
|Hei Sing Chan||Unit coordinator|