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14.54

International Trade

4-0-8 units. HASS-S · Undergraduate

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

Prerequisites & course information

Subject meets with 14.540 Prereq: 14.01 U (Spring) 4-0-8 units. HASS-S

Sources