|Status:||Bachelors - All
Bachelors - elective
BEF - elective
Semester - winter
|Course supervisors:|| doc. Ing. Vladimír Benáček CSc.
|Literature:||Please check the Moodle website of the course for latest details. It also contains handouts and links to other materials.
KRUGMAN, P.R., OBSTFELD M., MELITZ M.J. International Economics – Theory and Policy. 10th edition. Pearson. 2014. ISBN 978-0133423648 or newer editions.
Alternative texts or texts useable for specific topics:
HELPMAN, E. Understanding Global Trade. Belknap Press, 2011. ISBN-10: 0674060784, ISBN-13: 978-0674060784
PUGEL, T.A.: International Economics. 14th edition. McGraw-Hill Irwin, ISBN 978-0-07-3375757-5
|Description:||This course covers, with a focus on both theory and empirics, basic topics in international (interregional) trade at undergraduate level. The course does not deal with international business methods (logistics, use of letters of credits etc.), instead it focuses on trade theory and trade policy analysis and attempts to provide some insight into the following questions:
• Why do countries (regions) trade?
• What determines which goods will be exported/imported by particular countries?
• How does trade influence welfare?
• How do trade policies influence effects of trade on economies, can they improve effects of trade on welfare?
In short, we will analyze the benefits of trading and the causes (and effects) of specialisation, and development of theoretical opinions on these issues. Next we will review the policy instruments (tariffs, quotas, subsidies, anti-dumping measures, as well as very popular schemes for preferential treatment, i.e. customs unions, free trade areas) and options available to those who would want to analyze effects of trade policies.
While the course resembles standard courses in International Trade Theory as taught at many other undergraduate economic programmes, we are trying to provide a bit deeper insight by including more recent advances in trade theory (models with heterogenous firms or New Economic Geography) as well as emphasis on methods useable for empirical analysis (introduction into the correct use of gravity models, brief introduction into trade policy modelling).
At the end of the course its students should:
(i) Understand main factors which determine trade flows and effects of trade on economic structures and welfare according to mainstream economic theories.
(ii) Understand traditional models describing effects of tariffs and quotas on national economies.
(iii) Gain at least basic insight into the logic of latest development in trade theory (heterogenous firms).
(iv) Know basic methods of analysis of trade flows and trade policies
Please note, that all new course information and materials have been moved to Moodle.