Global Economics I
Objectives
The course introduces international trade and factor flows theory, as well as to related empirical studies, using standard microeconomics tools to
analyze economic interactions between countries. Topics to be covered include: determinants of the level and composition of trade between
countries; consequences of trade on consumer welfare and income distribution; effects of tariffs, quotas, and other trade policies; causes and
consequences of international labor migration and foreign direct investment.
General characterization
Code
1113
Credits
7.5
Responsible teacher
Alex Armand
Hours
Weekly - Available soon
Total - Available soon
Teaching language
English
Prerequisites
Mandatory precedence: 1102. Microeconomics
Bibliography
Suggested textbook: [FT] R. Feenstra and A. Taylor, International Economics, 4th edition, Worth, 2017. [We will cover the first 11 chapters. The remainder of the book will be useful for the Global Economics II course.] OR R. Feenstra and A. Taylor, International Trade, 4th edition, Worth, 2017. [This textbook includes only the first 11 chapters of the International Economics textbook that we will cover.]
Teaching method
A variety of teaching and learning methods will be used in this course: lectures covering both theoretical and empirical topics, weekly problem sets with applications of the material covered during lectures, and a group assignment with a simulation applied to trade policy.
Evaluation method
Final Grade = 30% Midterm Exam + 50% Final Exam + 20% Problem Sets and Class Participation Midterm and final exam are both mandatory . Final exam is comprehensive of all the contents taught in the course. Minimum final exam grade requirement of 8.0, and course passing grade of 9.5.
Subject matter
This course outline is a guide to the general nature and order of the topics covered in the course. Some variation may occur. Additional readings to the textbook will be posted in the course Moodle webpage.
I – Introduction to International Trade
[FT chap 1] Bernard et al. (2007)
II – The Ricardian Model
[FT chap 2]
III – The Specific Factors Model
[FT chap 3] Bernhofen and Brown (2004)
IV – The Heckscher-Ohlin Model
[FT chap 4] Krugman (2008)
Schott (2003) Batista and Potin (2014)
V – Movement of Labor and Capital between countries: International Labor Migration and FDI
[FT chap 5] Freeman (2006) Batista (2008)
Batista and McKenzie (2018) Bah and Batista (2018) Clemens (2011)
McKenzie and Yang (2014) Docquier, Ozden, and Peri (2014)
VI – Increasing Returns to Scale and Monopolistic Competition
[FT chap 6] Helpman (1999) Krugman (2009)
Arkolakis, Costinot and Rodriguez-Clare (2012)
VII – Offshoring of Goods and Services
[FT chap 7] Markusen (1995) Feenstra and Hanson (1999) Melitz (2003)
VIII – Import Tariffs and Quotas under Perfect Competition
[FT chap 8] Amiti et al. (2019) Harrigan and Barrows (2009)
IX – Import Tariffs and Quotas under Imperfect Competition
[FT chap 9] Amiti et al. (2019) Feenstra (1989)
X – Export Subsidies in Resource and High-Technology Industries [Time permitting]
[FT chap 10]
XI – International Agreements: Trade, Labor and the Environment [Time permitting]
[FT chap 11]