14.54
International Trade
Provides an introduction to theoretical and empirical topics in international trade. Offers a brief history of globalization. Introduces the theory of comparative advantage and discusses its implications for international specialization and wage inequality. Studies the determinants and consequences of trade policy, and analyzes the consequences of immigration and foreign direct investment. Students taking graduate version complete additional assignments.
Fall 2016
Topics
- Introduction
- The Basics
- Preferences and Demand
- Exchange Economies
- Exchange Economies: Welfare, Inequality, and Trade Imbalances
- “Standard” Trade Models
- “Standard” Trade Models: Changes in Terms of Trade
- Ricardian Trade Model
- Extensions of Ricardian Model
- Production Functions
- Specific Factors Model
- Specific Factors Model (cont.)
- Heckscher-Ohlin Model of Trade
- Heckscher-Ohlin Model of Trade (cont.)
- Trade and Inequality
- Increasing Returns to Scale
- Consequences of Increasing Returns: Theory and Evidence
- Increasing Returns: Dumping and External Economies of Scale
- Trade Policy: Tariffs
- Trade Policy: Other Policy Instruments
- Trade Policy (cont.)
- Factor Mobility: Labor Migration
- Factor Mobility: Multinational Firms
- Offshoring: Do Old Rules Still Apply
Readings
- Krugman, Paul, Maurice Obstfeld, and Marc Melitz. International Economics: Theory and Policy . 9th ed. Addison-Wesley, 2011. ISBN: 9780132146654.
- [KOM]= Krugman, Paul, Maurice Obstfeld, and Marc Melitz. International Economics: Theory and Policy . 9th ed. Addison-Wesley, 2011. ISBN: 9780132146654.
- [KOM] Chapters 1–2.
- [Fire] Chapter 1.
- [KOM] Chapter 6.
- [Fire] Chapter 2.
- [KOM] Chapters 3–5 and 7.
- ———. Economic Sophisms . Jazzybee Verlag, 2016. ISBN: 9783849687823. (Originally published in 1845)
- [Fire] Chapter 3.
- [KOM] Chapters 9–10.
- [KOM] Chapter 8.
- [KOM] Chapter 11.
- [KOM] Chapter 12.
- [Fire] Chapter 4.
- Brown, Drusilla, Alan Deardorff, and Robert Stern. “Issues of Environmental and Labor Standards in the Global Trading System.” In Globalization, Technological Change, and Labor Markets . Edited by Stanley W. Black. Springer, 2012, p. 235. ISBN: 9781461372530.
- [Fire] Chapters 5–6.
Prerequisites & course information
Subject meets with 14.540 Prereq: 14.01 U (Spring) 4-0-8 units. HASS-S
Sources
- Course catalogue ↗2026–2027
- MIT OpenCourseWare ↗Fall 2016
- MIT OCW syllabus ↗
- MIT OCW calendar ↗
- MIT OCW readings ↗
- Historical MIT OpenCourseWare offering. Named reading entries and schedule topics are automatically extracted from the linked source pages.