INTERNATIONAL TRADE

ECO3ITR

2016

Credit points: 15

Subject outline

In this subject topics in international trade theory are covered, such as determinants and patterns of trade and international competitiveness. Selected topics in international trade policy, including distortions such as import tariffs and export subsidies, and Australia's relationship with Regional Trade Agreements and the World Trade Organisation, are also explored.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorJoanna Poyago-Theotoky

Available to Study Abroad StudentsYes

Subject year levelYear Level 3 - UG

Exchange StudentsYes

Subject particulars

Subject rules

Prerequisites ECO1DSM or BUS1BUE or ECO1IMI

Co-requisitesN/A

Incompatible subjectsN/A

Equivalent subjectsN/A

Special conditionsN/A

Learning resources

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsInternational Economics: Theory & Policy, 9th EditionPrescribedKrugman, Paul R., Maurice Obstfeld, Marc MelitzADDISON WESLEY 2012

Graduate capabilities & intended learning outcomes

01. Differentiate between the 5 principal determinants of trade

Activities:
examples in lectures and tutorials
Related graduate capabilities and elements:
Creative Problem-solving (Creative Problem-solving)
Critical Thinking (Critical Thinking)
Information Literacy (Information Literacy)

02. List the characteristics of Free Trade Agreements, Customs Unions, and the World Trade Organization, and the evaluate the role they play in international trade policy.

Activities:
examples in lectures and tutorials
Related graduate capabilities and elements:
Critical Thinking (Critical Thinking)
Creative Problem-solving (Creative Problem-solving)
Information Literacy (Information Literacy)

03. Explain how international differences in production technology can lead to trade and gains from trade

Activities:
examples in lectures and tutorials
Related graduate capabilities and elements:
Creative Problem-solving (Creative Problem-solving)
Critical Thinking (Critical Thinking)
Information Literacy (Information Literacy)

04. Show how differences in factor endowments can lead to trade and the gains from trade in the short run when factors are not mobile between industries.

Activities:
examples in lectures and tutorials
Related graduate capabilities and elements:
Creative Problem-solving (Creative Problem-solving)
Information Literacy (Information Literacy)
Critical Thinking (Critical Thinking)

05. Use the principal results of the Heckscher-Ohlin trade model to evaluate the effects of trade on different agents within an economy

Activities:
examples in lectures and tutorials
Related graduate capabilities and elements:
Creative Problem-solving (Creative Problem-solving)
Critical Thinking (Critical Thinking)
Information Literacy (Information Literacy)

06. Use the simple two good general equilibrium model to analyse terms of trade changes

Activities:
examples in lectures and tutorials
Related graduate capabilities and elements:
Information Literacy (Information Literacy)
Critical Thinking (Critical Thinking)
Creative Problem-solving (Creative Problem-solving)

07. Explain how the presence of external economies of scale can lead to gains from trade.

Activities:
examples in lectures and tutorials
Related graduate capabilities and elements:
Creative Problem-solving (Creative Problem-solving)
Information Literacy (Information Literacy)
Critical Thinking (Critical Thinking)

08. Graphically and numerically demonstrate how the presence of increasing returns to scale and imperfectly competitive output markets can lead to intra-industry trade

Activities:
examples in lectures and tutorials
Related graduate capabilities and elements:
Critical Thinking (Critical Thinking)
Information Literacy (Information Literacy)
Creative Problem-solving (Creative Problem-solving)

09. Use a partial equilibrium diagram to assess the various tools of trade policy use by governments

Activities:
examples in lectures and tutorials
Related graduate capabilities and elements:
Critical Thinking (Critical Thinking)
Information Literacy (Information Literacy)
Creative Problem-solving (Creative Problem-solving)

10. Critique the basic arguments surrounding the political economy of trade policy.

Activities:
examples in lectures and tutorials
Related graduate capabilities and elements:
Information Literacy (Information Literacy)
Creative Problem-solving (Creative Problem-solving)
Critical Thinking (Critical Thinking)

Subject options

Select to view your study options…

Start date between: and    Key dates

France, 2016, Week 02-13, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorDarren Henry

Class requirements

Lecture Week: 02 - 13
One 2.0 hours lecture per week on weekdays during the day from week 02 to week 13 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
One 2000 word assignment30 01, 03, 04, 05, 06
One two hour final exam60 01, 02, 03, 04, 05, 06, 07, 08, 09, 10
Class participation10

Melbourne, 2016, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorJoanna Poyago-Theotoky

Class requirements

Lecture Week: 31 - 43
One 2.0 hours lecture per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Tutorial Week: 31 - 43
One 1.0 hours tutorial per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
One 2000 word assignment30 01, 03, 04, 05, 06
One two hour final exam60 01, 02, 03, 04, 05, 06, 07, 08, 09, 10
Class participation10