Why countries trade in the first place? How large is international trade and what are the main directions of international trade? What is the right way to measure the international trade? How and by whom international trade is regulated? What are the welfare consequences of international trade? How international trade affects individual firms and industries? Why some firms decide to export? What is the impact of government policies on trade volumes and welfare, and what are the best policies? These are just some of the questions we will answer in this International Economics class by combining modern models of international trade and latest empirical research. In addition, we will work on building mathematical, statistics, and econometrics skills that are necessary to conduct independent research in international economics. We will also study the main sources of historical trade data, tariff data and will learn how to use these sources to obtain information.

On completion of the course, students should be able to: 
• Analyse the determinants, patterns and effects of international trade within a general equilibrium framework, where the interrelationships amongst product and factor markets in an economy are explicitly taken into consideration.
• Describe theoretical models in international economics and apply these theories to the real world issues.
• Explain the effect of government policies in international economics.
• Distinguish between the efficiency implications and distributional consequences of trade and trade policy.
•  Understand the role of politics in trade and vice versa.
• Assess the costs and benefits of trade policy from an economic point of view.

• A mandatory mid semester examination - 40%
• 3-3.5 hour final exam - 60%

Or

• Two home assignments - 20%
• A mandatory mid semester examination - 30%
• 3-3.5 hour final exam - 50%

Or

• Presentation - 30%
• A mandatory mid semester examination - 30%
• 3-3.5 hour final exam - 40%

Lectures and tutorials as for the pass course plus one additional honours lecture per week.

Students are advised to have basic preparation in statistics and econometrics. In particular, students are suggested to have some skills in regression analysis and general understanding of binary choice models as well as of the maximum likelihood estimation method at the level of the undergraduate statistics/econometrics class.

ECON2101/2111 Microeconomics 2 (P or H) and ECON2102/2112 Macroeconomics 2 (P or H).

ECON3103 International Economics (P)

As for the pass course, with additional journal article references and web materials.

This course is for intending Economics IV Honours students and other students who want a greater level of challenge, a more extensive treatment of the theory of international trade than is possible in the pass course and, particularly, an introduction to the use of general equilibrium analysis and its quantitative application in the context of trade models.

Information presented here should be read in parallel with ECON3103 International Economics (P).

Please refer to Course Website