ECON 7036 - International Trade and Investment Policy IID

North Terrace Campus - Semester 2 - 2024

How has globalization changed Australia and other economies across the globe? Why have flows of goods and services, foreign direct investment and migration increased so tremendously in recent times? And how should we evaluate these phenomena? Who wins and who loses from globalization? What does it imply for workers, consumers, and firms? And how does government policy influence it? The course will expose students both to classical trade theories as well as more recent developments such as the new (new) trade theory. A specific focus will be put on using simple economic models to analyse policy-relevant questions. As this is an introductory postgraduate course in international trade, no previous knowledge of international economics is assumed.

  • General Course Information
    Course Details
    Course Code ECON 7036
    Course International Trade and Investment Policy IID
    Coordinating Unit Economics
    Term Semester 2
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Available for Study Abroad and Exchange Y
    Incompatible ECON 2500
    Assumed Knowledge ECON 7200
    Assessment Typically tutorial assignments and final exam
    Course Staff

    Course Coordinator: Dr Jacob Wong

    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

  • Learning Outcomes
    Course Learning Outcomes
    The aim of this course is to introduce students to a couple workhorse models of international trade. Equipped with theoretical frameworks, students will have internally consistent frameworks to think through basic issues of international trade. The course pays particular attention to explaining the reasons why countries engage in international trade and investment and how trade affects consumers, workers and firms. It provides students an overview of current trade and investment patterns and the world trade system. A key objective of this course is to provide students with the necessary tools so that they can analyze currently discussed issues in international economics and formulate and evaluate potential policies for the institutions and/or governments they may work for in the future. As such, the course will involve some mathematics which will permit the development of theoretical models to eliminate any handwaving explanations.

    On successful completion of this course, students should will be able to:

    1 Explain the concept of comparative advantage.
    2 Describe the essentials of trade theories.
    3 Identify potential winners and losers from trade.
    4 Explain comparative static results in several workhorse models of international trade.
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)

    Attribute 1: Deep discipline knowledge and intellectual breadth

    Graduates have comprehensive knowledge and understanding of their subject area, the ability to engage with different traditions of thought, and the ability to apply their knowledge in practice including in multi-disciplinary or multi-professional contexts.


    Attribute 2: Creative and critical thinking, and problem solving

    Graduates are effective problems-solvers, able to apply critical, creative and evidence-based thinking to conceive innovative responses to future challenges.


    Attribute 3: Teamwork and communication skills

    Graduates convey ideas and information effectively to a range of audiences for a variety of purposes and contribute in a positive and collaborative manner to achieving common goals.


    Attribute 4: Professionalism and leadership readiness

    Graduates engage in professional behaviour and have the potential to be entrepreneurial and take leadership roles in their chosen occupations or careers and communities.


    Attribute 5: Intercultural and ethical competency

    Graduates are responsible and effective global citizens whose personal values and practices are consistent with their roles as responsible members of society.


    Attribute 8: Self-awareness and emotional intelligence

    Graduates are self-aware and reflective; they are flexible and resilient and have the capacity to accept and give constructive feedback; they act with integrity and take responsibility for their actions.

  • Learning Resources
    Required Resources
    Robert C. Feenstra, Alan M. Taylor (2021), International Trade (New York: Worth)

    5th Edition. ISBN-13: 978-1-319-38286-5

    Recommended Resources
    Further Reading

    You are expected to read the textbook as well as the articles assigned in lectures or tutorials. In addition, a series of lecture slides will be made available. The final exam will cover all lecture materials, assignments, and assigned readings.

    An alternative but similar text book is (older editions are perfectly fine, too):

    Krugman, P., M. Obstfeld and M. Melitz: International Economics: Theory and Policy, 11th edition, Pearson 2018.

    Another valuable text book with a different style compared to the FT and KOM text books which adds an additional perspective to the topics covered is:

    McLaren, John: International Trade, Wiley 2013.
    Online Learning
    Lecture slides and assignments will be made available through the course website

  • Learning & Teaching Activities
    Learning & Teaching Modes

    The format of the teaching consists of formal lectures and tutorial sessions. The lectures introduce new concepts, encourage textbook revision, and provide anchor points for further academic development. In tutorials, students will discuss exercises from the assignments relating to the various trade theories and policies.

    Lecture sessions

    The lectures consist of a combination of slides and graphical analyses on the white board, allowing for presentation of the material in a variety of styles.


    Tutorials represent an important learning component of the class. They are aimed to foster problem solving and discussion skills, and they are designed based on the combination of lectures material and textbook.

    The tutorials will deal with solving sets of trade-related problems from the assignments. Students are expected to work through the assignments independently (or in groups) and prepare individual solutions to be handed in via MyUni which will be discussed during the tutorial time (or as announced on MyUni and during the lecture).


    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    Students in this course are expected to attend all lectures throughout the semester plus tutorial classes. In addition, students should allocate 4-5 hours per week to undertake reading and individual study. The lecturer is available for one-on-one consultations at times to be arranged by mutual agreement. Consultations will be held in the lecturer’s designated room.

    Learning Activities Summary

    1. Globalization - an introduction
    2. Why do countries trade: The Ricardian Model of International Trade (Comparative Advantage)
    3. Why do countries trade: The Heckscher-Ohlin Model of International Trade (Factor Endowments)
    4. The Specific Factor Model: Rigidity in Factor Mobility

    Note: This list of topics covered is tentative and may change.
    Specific Course Requirements
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Assessment Task Task Type Due Weighting Learning Outcome
    Tutorial Problem Sets Formative Weekly 20% 1-6
    Assignments Formative & Summative During the semester 30% 1-6
    Final Exam Summative Final exam period 50% 1-6
    Total 100%
    Assessment Related Requirements
    Assessment Detail

    To gain a pass, a total of at least 50% overall must be obtained.

    There will likely be two written assignments. Written assignment submissions should not exceed two pages in length with remaining details to be announced on the course MyUni site.

    Those who fail to submit a written assessment by the due date must obtain documentation that satisfies university regulations in order to avoid a grade of zero on the assignment. An alternative assessment/reweighting will only be offered to those who obtain accepted documentation.

    The final exam is expected to be three hours in duration.

    Each student will be asked to submit four tutorial assignments over the duration of the semester. Students will be required to submit their assignments at their weekly tutorial and will find out during each weekly tutorial whether they are to hand in an assignment during that particular tutorial. Each student's best three submitted tutorial assignment will count towards their final grade with equal weighting across submitted assignments. A make-up opportunity to submit a tutorial assignment will only be offered to those who obtain accepted documentation.

    Please note that dictionaries are not allowed in School of Economics and Public Poilcy exams.

    Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process, and may affect marks. Marks cannot be awarded for answers that cannot be read or understood.

    See MyUni for further information on assessment details.

    Submission of the assignments is required as per instructions on MyUni.
    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

    Additional Assessment
    If a student receives 45-49 for their final mark for the course they will automatically be granted an additional assessment. This will most likely be in the form of a new exam (Additional Assessment) and will have the same weight as the original exam unless an alternative requirement (for example a hurdle requirement) is stated in this semester’s Course Outline. If, after replacing the original exam mark with the new exam mark, it is calculated that the student has passed the course, they will receive 50 Pass as their final result for the course (no higher) but if the calculation totals less than 50, their grade will be Fail and the higher of the original mark or the mark following the Additional Assessment will be recorded as the final result.
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    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy ( course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

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  • Policies & Guidelines
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