International Trade

Universidad Carlos III de Madrid

Course Description

  • Course Name

    International Trade

  • Host University

    Universidad Carlos III de Madrid

  • Location

    Madrid, Spain

  • Area of Study

    Business, Business Administration, Business Management, Development Studies, Economics, Finance, International Economics, International Studies

  • Language Level

    Taught In English

  • Course Level Recommendations

    Upper

    ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.

    Hours & Credits

  • ECTS Credits

    6
  • Recommended U.S. Semester Credits
    3
  • Recommended U.S. Quarter Units
    4
  • Overview

    COMPETENCES AND SKILLS THAT WILL BE ACQUIRED AND LEARNING RESULTS.
    The goal of this class is to learn the theory of international trade and apply it to real problems of the world economy. As for the learning goals, by the end of the course students should be able to:

    - Understand the classical models of international trade (Ricardo and Heckscher-Ohlin) as well as the models of monopolistic competion.
    - Analyze the gains from trade and their redistributive effects.
    - Understand the relation between international trade, migration, and capital flows.
    - Understand the concepts of trade deficit and trade surplus, and understand its relation to investment and savings.
    - Analyze the effects of trade policy (tariffs and quotas) in partial equilibrium and general equilibrium.
    - Understand the advantages and disadvantages of regionalism and multilateralism.

    In terms of specific skills, by the end of the course students should be able to:
    - Solve trade models graphically and analytically.
    - Determine prices, trade volumes, and welfare effects of trade liberalization.
    - Calculate costs and benefits of trade liberalization and protectionism for different groups.
    - Calculate the costs and benefits of liberalizing migration.

    In terms of competences, the course focuses on:
    - The capacity to solve complex problems graphically and analytically.
    - The capacity to relate economic theory to real the real problems of the global economy.

    In terms of attitude, the course expects students to
    - Develop a critical, open and informed opinion in the debate on the effects of globalization.
    - Develop a scientific approach in the challenging task of analyzing complex real world problems.

    DESCRIPTION OF CONTENTS: PROGRAMME
    The course focuses on the theory of international trade. The most important topics covered are:

    - Patterns of trade and specialization (from the classical models --- Ricardo and Heckscher-Ohlin --- to the more recent models of monopolistic competition)
    - Gains from trade
    - Effects of international trade on income distribution
    - Economic geography and regional specialization
    - Trade policies
    - WTO and trade agreements

    Along the way, several important real world problems will be discussed, such as the effects of offshoring on wages, the relation between trade and migration, the tension between multilateralism and regionalism, and the effect of trade liberalization on income inequality.

    LEARNING ACTIVITIES AND METHODOLOGY
    The course consists of theoretical lectures and sessions of problem solving. Students are expected to solve and hand in problem sets. Problem solving is essential to acquiring the knowledge and skills required by this course.

    ASSESSMENT SYSTEM
    The final grade consists of problem sets (10%), two midterms (30%) and one final exam (60%)

    % end-of-term-examination: 60
    % of continuous assessment (assigments, laboratory, practicals?): 40

    BASIC BIBLIOGRAPHY
    - KRUGMAN, PAUL R., OBSTFELD, M. AND MELITZ, MARC J. INTERNATIONAL ECONOMICS: THEORY AND
    POLICY, PEARSON, 2011

Course Disclaimer

Please note that there are no beginning level Spanish courses offered in this program.

Courses and course hours of instruction are subject to change.

Eligibility for courses may be subject to a placement exam and/or pre-requisites.

Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.

ECTS (European Credit Transfer and Accumulation System) credits are converted to semester credits/quarter units differently among U.S. universities. Students should confirm the conversion scale used at their home university when determining credit transfer.

Please reference fall and spring course lists as not all courses are taught during both semesters.

Availability of courses is based on enrollment numbers. All students should seek pre-approval for alternate courses in the event of last minute class cancellations

Please note that some courses with locals have recommended prerequisite courses. It is the student's responsibility to consult any recommended prerequisites prior to enrolling in their course.