ECON 2500 - International Trade & Investment Policy II

North Terrace Campus - Semester 2 - 2015

This is an introductory undergraduate course in international trade. The course covers the following standard topics: the main reasons for trade, trade patterns, trade and income distribution, FDI and immigration, trade policy instruments, WTO and the multilateral trading system, trade agreements. The course may also cover additional topics such as offshoring, trade and child labour, globalisation and environment.

  • General Course Information
    Course Details
    Course Code ECON 2500
    Course International Trade & Investment Policy II
    Coordinating Unit Economics
    Term Semester 2
    Level Undergraduate
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Available for Study Abroad and Exchange Y
    Incompatible ECON 2000
    Assumed Knowledge ECON 1004
    Assessment Typically, tutorial work, mid-term & final exam
    Course Staff

    Course Coordinator: Associate Professor Shandre Thangavelu

    Associate Professor Shandre Mugan Thangavelu
    Institute for International Trade
    Level 6, 10 Pulteney Street, University of Adelaide.

    Dr. Uwe Kaufmann
    Institute for International Trade
    Level 6, 10 Pulteney Street, University of Adelaide

    Course Timetable

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

  • Learning Outcomes
    Course Learning Outcomes
    The objectives of this course is to provide students with an introduction to the theory of international trade and policy in terms of (a) concepts and principles of trade, (b) conduct of trade policy, and (c) global issues on trade and its implications for Asia and Australia.

    Upon successful completion of this course students will be able to:

    1 Understanding of the key issues related to trade and policy
    2 Students will be able to understand the theories and models of international trade with application to global policy issues.
    3 Students will be familiar with the major developments in global trade issues such as WTO and regional integration.

    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. 1-3
    The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 1-3
    An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 1-3
    Skills of a high order in interpersonal understanding, teamwork and communication. 1-3
    A proficiency in the appropriate use of contemporary technologies. 1-3
    A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. 1-3
    A commitment to the highest standards of professional endeavour and the ability to take a leadership role in the community. 1-3
    An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. 1-3
  • Learning Resources
    Required Resources
    Krugman, Obstfeld, Melitz, International Economic Theory and Policy, 10th Ed. 0-13-382684-5, Prentice Hall
    Online Learning
    Lecture notes and tutorials will be made available through the course website on

    Some Useful Websites:
    International Center for Trade and Sustainable Development: 
    The World Bank: 
    Alan Deardorff’s Glossary of International Economics Terms:
    International Economics Terms
  • Learning & Teaching Activities
    Learning & Teaching Modes
     The course consists of lectures, tutorials and group discussions.

    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 one tutorial class each week. In addition, the workload for this class is designed for 9 hours per week of independent study.
    Learning Activities Summary
    Week 1 World Trade and Developing Countries
    Week 2 Labor Productivity and Comparative Advantage: The Ricardian Model
    Week 3 Specific Factors and Income Distribution
    Week 4 Factor Resources and Trade: The Heckscher-Ohlin Model
    Week 5 Strategic Trade Models
    Week 6 Multinationals: External Economies of Scale and the International Location of Production
    Week 7 Multinational Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises
    Weeks 8 & 9 International Trade Policy - The Instruments of Trade Policy
    Week 10 The Political Economy of Trade Policy: Education, Industrial and Trade Policy
    Week 11 Trade Policy in Developing Countries: Regionalism and Free Trade Agreements
    Week 12 Controversies in Trade Policy: WTO
  • 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

    Tutorial participation      10%

    Weekly assignments      25%

    Mid semester test          25%

    Final exam                     40%

    Assessment Detail

    Weekly tutorial assignments and quizzes (short written assignments, students applying knowledge from lectures, etc.): 25%

    Students are expected to source materials for the answers to the tutorial problem sets themselves and in discussion with their classmates.

    Tutorial participation: 10%

    Students are expected to discuss their proposed solutions during the tutorials. The tutors will be available to discuss the answers which students propose. Tutors in charge will assess student's tutorial participation.

    Mid semester test: 25%The structure of the mid-term will be discussed during lectures.

    Final Exam: 40%

    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.
  • Student Feedback

    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.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

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