BASICS FOR WORLD ECONOMY

The scope of the course is outlined below. The aim is to introduce undergraduate students to basic international trade theory, starting from the classical foundations of comparative advantage developed by David Ricardo proceeding to Ricado's classical model that is extended to having money and prices in Part1. Part2 is extensive and modifies the latter classical model structure into the modern versions of the neoclassical trade model in order to highlight the important trade pattern implications of (i) consumption and production sectors of countries; (ii) changes in terms of trade and in shifts in national offer curves, and (iii) factor endowments. Throughout, rigorous attention is placed in analysis of gains of trade of all models and model alterations. Aimed at being non-mathematical, the course strives to rigorously use graphical methods to illustrate points. At the course's end, the course will provide analyses of selected trade policy instruments and illuminate the impact on trade patterns of such policies and instruments.

The goal of this course is to provide students with a solid understanding of the global trading system. By the end of the course, students should be able to apply the ideas learned in this class to real-world situations.

Students will be able apply theories to interpret trends in international trade and critically analyze international trade policy.