ECON 7072 - International Trade IIID
North Terrace Campus - Semester 1 - 2014
General Course Information
Course Code ECON 7072 Course International Trade IIID Coordinating Unit School of Economics Term Semester 1 Level Postgraduate Coursework Location/s North Terrace Campus Units 3 Contact Up to 3 hours per week Assumed Knowledge ECON 7011 Restrictions Available to ProCertPubPolicy, GradCertEc, GradCertIntEc, GradDipAppEc, GradDipIntEc, MAppEc, MAppEc(Int), MAppEc(PubPol), MFinBusEc students only Course Description This course deals with the theory and practice of international trade and of trade-related policies. It focuses on analysing the gains from trade, the changing patterns of trade, the income distributional consequences of liberalising foreign trade, the relationship between trade, investment, and economic growth, and the reasons for and consequences of trade policies.
Course Coordinator: Dr Raul BarretoOffice location: Room 426, 10 Pultney Street
Telephone: 8313 3240
The full timetable of all activities for this course can be accessed from Course Planner.
Course Learning OutcomesOn successful completion of this course students will be able to:
1 understand, at the level of formal analysis, the major models of international trade and be able to distinguish between them in terms of their assumptions and economic implications 2 understand the principle of comparative advantage and its formal expression and interpretation within different theoretical models 3 be able to apply partial equilibrium and (where required) general equilibrium models in analysing the economic effects of (a) trade policy instruments such as tariffs, quotas, export subsidies, (b) retaliatory measures such as anti-dumping duties and countervailing duties and (c) the creation of regional trading arrangements such as free trade areas, customs unions and common markets 4 be familiar with, and be able to critically analyse the main arguments for protection and conversely be able to critically evaluate the relevance and realism of arguments for free trade, taking into account the costs and benefits of trade policy measures on different sections of the community and the implications for the formulation of trade policy 5 be familiar with the major recent developments in the world trading system, and be able to critically analyse key issues raised both by the current round of WTO negotiations and by the spread of regional trading arrangements 6 develop communications skills through the presentation of your work, interactions during tutorial sessions, and appropriate use of the discussion board
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) Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. 1-6 The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 1-6 An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 1-6 Skills of a high order in interpersonal understanding, teamwork and communication. 1-6 A proficiency in the appropriate use of contemporary technologies. 1-6 A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. 1-6 A commitment to the highest standards of professional endeavour and the ability to take a leadership role in the community. 1-6 An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. 1-6
International Trade: Theory and Evidence by Markusen, Melvin, Kaempfer and Maskus, Mcgraw Hill, 1995
This textbook is available free of charge and may be downloaded from: http://spot.colorado.edu/~markusen/textbook.html
The set of concepts that we study are standard. They are in no way unique to a certain brand of economics nor are they unique to this textbook. These concepts make up the essence of international trade theory. And I believe that if you understand the theory, you can better assess the world around you. We are economists. We are concerned with what choices people make and why they make those choices. We therefore study theory and then relate the theory to reality. The closer the theory is to the observed world, the better is that theory. And if the theory is really good, we can use it to actually predict behaviour. The better we can predict behaviour, the better will ultimately be the consequent policy that we write and thereby live under.
The information that you need to know is widely available. I have included some optional references below. Please keep in mind that I ultimately don’t care how you learn this material so long as you do.
Caves, R.E., J.A. Frankel and R.W. Jones, World Trade and Payments: An Introduction, New York: Harper Collins 1996 (7th edition).
Ethier,W.J., Modern International Economics, New York: W.W. Norton, 1988 (2nd edition).
Kenen, P.B, The International Economy, Englewood Cliffs: Prentice Hall, 1989 (2nd edition).
Krugman, P.R. and M. Obsfeld , International Economics: Theory and Policy, New York: Harper Collins 1994 (3rd edition).
Pomfret, R. International Trade: An Introduction to Theory and Policy, Oxford: Basil Blackwell, 1991.
Sodersten, B. and G. Reed, International Economics, London: Macmillan, 1994 (3rd edition).
Robert C. Feenstra and Alan M. Taylor, International Trade, 2007 Worth Publishers.
Online LearningMyUni - http://www.myuni.adelaide.edu.au
Other online Resources:
International Center for Trade and Sustainable
The World Bank: http://www.worldbank.org
Alan Deardorff’s Glossary of International Economics Terms:
Learning & Teaching Activities
Learning & Teaching Modes
The lectures will closely follow the text. The idea is that the lectures and the text should reinforce each other. You are strongly advised to keep up with the reading. You will find that the lectures are far easier to follow if you have already been exposed to the material via the text.
The tutorial will be primarily based on problem solving in preparation for your assessment.
The information below is provided as a guide to assist students in engaging appropriately with the course requirements.
Lectures: 2 Hours per week
Tutorials: 1 Hour per week
Home study expectation: 6 Hours per week
Learning Activities Summary
Part I - Introduction
Week #1 - Technical Concepts - Markusen, et.al., Chapters 1 - 4
Week # 2 - Why do countries trade? - Markusen, et.al., Chapters 5 - 6
Part II - Theoretical Analysis of International Trade
Week # 3 - The Classical Model: Differing Technologies - Markusen, et.al., Chapter 7
Week # 4 & 5 - The Heckscher - Ohlin Model - Markusen, et.al., Chapter 8
Week # 5 & 6 - The Specific Factors Model - Markusen, et.al., Chapter 9
Week # 7 - Mid Semester Examination
Week # 7 - Government Policies as the Determinants of Trade - Markusen, et.al., Chapter 10
Week # 8 - Imperfect Competition as the Determinant of Trade and the Gains from Trade - Markusen, et.al., Chapter 11
Week # 8 - Increasing Returns to Scale - Markusen, et.al., Chapter 12
Week # 9 - Tastes, Per Capita Income, and Technological Change as the Determinants of Trade - Markusen et.al., Chapter 13
Week # 9 - Empirical Studies of Comparative Advantage Models - Markusen, et.al., Chapter 14
Part III - Trade Policy
Week # 10 -Tariffs - Markusen, et.al., Chapters 15
Week # 10 - Quotas and Other Non-tariff Barriers - Markusen, et.al., Chapters 16
Week # 11 - Imperfect Competition, Increasing Returns, and Strategic Trade Policy - Markusen, et.al., Chapter 17
Week # 11 - Preferential Trade Areas - Markusen, et.al., Chapter 18
Week # 12 - The Political Economy of Trade Policy - Markusen, et.al., Chapter 19
Week # 12 - Administered Protection - Markusen, et.al., Chapter 20
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- Assessment must encourage and reinforce learning.
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Assessment SummaryStudents will be assessed based on the following:
Mid-semester Test 30% Group Assignment #1 10% Group Assignment #2 10% Final Exam 50%
NOTES ON ASSESSMENT
1. Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process. Marks cannot be awarded for handwriting that cannot be read.
2. Assessment marks prior to the final exam may be displayed on the course website through Myuni. Students are encouraged to check their marks and notify the lecturer-in-charge of any discrepancies.
It is each student's responsibility to read the examination timetable. Misreading the timetable is not accepted as grounds for granting a supplementary exam. University staff are not permitted to provide examination times to students over the telephone or in response to personal enquiries.
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Students may take a CALCULATOR that is incapable of storing text.
Assignments are to be submitted via the Professions Undergraduate Hub on Ground Level of Nexus 10.
Assignments will generally be returned during tutorials/lectures the week following submission.
Students must not submit work for an assignment that has previously been submitted for this course or any other course without prior approval from the lecturer-in-charge.
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.
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