Tutor: Wencxiao Wang  wenxiao.wang@adelaide.edu.au

The purpose of this course is to provide students with a thorough grounding in the theory of international trade as well as international trade policy and to demonstrate the relevance of the theory in the analysis of (a) existing patterns of international trade and what determines them, (b) the conduct of trade policy and (c) the economic implications of international trade and trade policy both for individual economies such as Australia and the wider international community.

 

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

1. Compare 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. Employ the principle of comparative advantage and its formal expression and interpretation within different theoretical models
3. 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. Distinguish and 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. Identify 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.

1) 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: https://www.researchgate.net/publication/46446596_International_Trade_Theory_and_Evidence

2) International Trade, Feenstra and Taylor, Macmillan, 2017

This is a course in international trade theory and policy. As such, almost any advanced text on trade can be useful as authors often present similar material in varying and creative ways. You should not hesitate to refer to differing sources should you need further clarification beyond the above two texts.

For the mathematical representations as well as more rigorious treament of the models discussed, an excellent resource is by Robert Fenstra, Advanced International Trade, Macmillan.

MyUni - http://www.myuni.adelaide.edu.au 

Other online Resources:

WTO: http://www.wto.org 
UNCTAD: http://www.unctad.org 
OECD: http://www.oecd.org 
International Center for Trade and Sustainable Development: http://www.ictsd.org 
The World Bank: http://www.worldbank.org 
Alan Deardorff’s Glossary of International Economics Terms: http://www.personal.umich.edu/~alandear/glossary

Learning in this course is through lectures, tutorials, and personal study.

The lectures will provide you with the necessary understanding of the material to be able to solve the exercises you will be given during tutorials or exams.

Tutorials represent an important learning component of the class. Students are expected to work through the assignments and prepare solutions to be discussed during the tutorial time.

Lectures: 2 Hours per week
Tutorials: 1 Hour per week
Home study expectation: 6 Hours per week

Teaching & Learning Activities	Related Learning Outcomes
Lectures	1-5
Tutorials	1-6

Lecture Schedule

Part I	Introduction	Chapters
Wk 1	Introduction -    Feenstra & Taylor Technical Concepts -   Markusen, et.al.,	1 1 - 4
Wk 2	Why do countries trade? -   Markusen, et.al.	5 - 6
Part II	Theoretical Analysis of International Trade
Wk 3	The Classical Model: Differing Technologies -    Markusen, et.al.   Feenstra & Taylor	7 2
Wk 4 & 5	The Heckscher-Ohlin Model  -   Markusen, et.al.   Feenstra & Taylor	8 4
Wk 5 & 6	The Specific Factors Model -   Markusen, et.al.   Feenstra & Taylor	9 3
	Mid Semester Examination
Wk 7	Government Policies as the Determinants of Trade -   Markusen, et.al.	10
Wk 8	Imperfect Competition as the Determinant of Trade and the Gains from Trade -   Markusen, et.al.   Feenstra & Taylor	11 6
Wk 9	Increasing Returns to Scale -   Markusen, et.al.,   Feenstra & Taylor	12 6
Part III	Trade Policy
Wk 10	Tariffs  -   Markusen, et.al.	15
	Quotas and Other Non-tariff Barriers -   Markusen, et.al.	16
Week 11	Imperfect Competition, Increasing Returns and Strategic Trade Policy -   Markusen, et.al.	17
	Preferential Trade Areas   Markusen, et.al.	18
Week 12	The Political Economy of Trade Policy   Markusen, et.al.   Feenstra & Taylor	19 11
	Administered Protection   Markusen, et.al.	20

Assessment Task	Due Date/ Week	Weight	Length(Word,Time)	Learning Outcomes
Mid-term Exam	Week 7	30%	100 Minutes	1 - 4
Participation	Weekly	10%	20 Minutes/Week	1 - 6
Online Quizzes	Weekly	10%	60 Minutes/Week	1 - 4
Assignment	Week 7	10%	180 Minutes	1 - 4
Final Exam	Week 13	40%	180 Minutes	1 - 5
Total		100%

1. Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process. Marks may be deducted in the midterm and final examinations because of poor hand-writing.

2. The 11 online quizzes must be completed prior to the due date to count toward assessment. Students may make as many attempts of each quiz that he or she wishes prior to the due date and only the highest score from the attempts will recorded. Your final quiz score will be the average of the your eight best online quizzes will be counted.

3. Redemption - If you miss a quiz, the midterm, or do not submit the assignment in due time, there will not be a replacement assessment. All missed assessments will add to the weight of the final exam such that any mark below your final exam score is effectively dropped.

4. Hurdle - Students are required to score at least 40% on the final exam to pass the course.

NOTES ON ASSESSMENT

Online Quizzes - 10%
Weekly – except week 1
The tutorial quizzes component of the assessment will be based on marks received for short online quizzes that will occur in each week except week 1. Of the 11 quizzes, only the best 8 will be counted toward assessment. Prior to each quizzes due date, students may make as many attempts as he or she wishes. Only the highest score from any attempt is counted.

Assignment - 10%
There will be a written assignment due at the close of week 7. the material covered by the assignment will be selected from week 1 through 6 (inclusive). It will consist of long problems similar to those discussed during tutorials and may also include calculations.

The assignmentis redeemable, which means that if the grade you obtained for the final examination is higher than the one you obtained for the assignment (or if you missed the assignment altogether), the final examination grade will account for 50% of your overall grade.
Failure to sit the midterm test will result in receiving zero points, whether a medical certificate is provided or not. 

ASSESSMENT DETAIL	UNIVERSITY GRADUATE ATTRIBUTE	LEARNING OUTCOME
Assignemnt	Critical thinking and problem solving Career and leadership readiness	1,2,3,4

Tutorial Exercises - Non-graded
Weekly – except week 1
Tutorial exercises will be made available on MyUni during the week prior to the tutorial. You will be asked to prepare some exercises before going to your tutorial. Please be aware that this preparation is important as it will improve your learning during the tutorial and will contribute towards a dynamic environment where students and tutor will interact more actively with one another. These exercises are not to be submitted or graded.

Assessment Detail	University Graduate Attribute	Learning Outcome(s)
Tutorial Discussion	Critical thinking and problem solving Teamwork and communication skills	1,2,3,4,5,6
Online Submission	Critical thinking and problem solving Career and leadership readiness	1,2,3,4

Mid semester test (Week 7) - 30%
During lecture time, same location
This test will assess the topics of Weeks 1-6 (inclusive). It will be 100 minutes in length.
It will consist of problems similar to those discussed dyring tutorials and may also include multiple choice questions.

The midterm test is redeemable, which means that if the grade you obtained for the final examination is higher than the one you obtained for the midterm (or if you missed the midterm altogether), the final examination grade will account for 70% of your overall grade.
Failure to sit the midterm test will result in receiving zero points, whether a medical certificate is provided or not. 

Assessment Detail University Graduate Attribute Course Learning Outcome(s)
Mid Semester Test Critical thinking and problem solving
Career and leadership readiness 1,2,3,4

Assessment Detail	University Graduate Attribute	Course Learning Outcome(s)
Mid Semester Test	Critical thinking and problem solving Career and leadership readiness	1,2,3,4

Participation - 10%
Due Date: Weekly
Each week during lectures, students will be asked to complete a short online quiz pertaining to that week's material. The quizzes will be completed via the students' electronic device, be it computer, tablet or smartphone. Failure to attend lectures will disallow completion of this assessment task.

Final Exam - 40%
There will be a 3 hour exam. The final exam is comprehensive, i.e. it can cover ALL the topics of this course. It will consist of mathematical problems and short answer questions, and may also include multiple choice questions. There is a score 40% or higher hurdle requirement on the final exam to pass the course.

1- No late assignment accepted. Exceptional circumstances will be evaluated by the lecturer in charge on a case-by-case basis and should be discussed whenever possible at least 48 hours before the due date. Failure to hand in an assignment on time will lead to a zero mark.

2 – Extensions and alternative assessment conditions for students with disabilities:
It is your responsibility to contact lecturer, in the first 2 weeks of the semester and provide them with a copy of your Access Plan.
You do not have an automatic right to extensions for assignments. You must apply for extensions in the designated way at least 2 weeks before the due date for the assignment. The usual extensions available to students with disabilities is 2 days over the regular due date of the assignments.

3 – All assignments must be submitted electronically via MyUni. Hand written assignments may be scanned for submission

4 – Each assignment should be accompanied by a cover sheet.

5 - Medical reports from only Australian registered medical practitioners are accepted. See for the list of acceptable medical practitioners: www.ahpra.gov.au.

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.