International Trade and Trade Policy

Description

Practical information Course ID: FEB13085 Credits: 4 EC Instruction language: English Registration procedure: Via OSIRIS Secretariat: Support Office Economics, E1-28, 010-4081441, office.ec@ese.eur.nl Course description Content: Why do countries trade? Is everyone better off from trade? Why and how do governments use trade policy instruments and how do they affect the economy? What is the role of domestic politics in shaping trade policy? These are some of the questions we will explore in this course. We will begin by reviewing the traditional trade models of Ricardo and Hecksher-Ohlin, and identify the winners and losers from trade. Then, we will study the instruments of trade policy and their effects. The course will then move to the political economy of trade policy to understand what determines trade policy, and we will conclude by studying the world trading system, paying special attention to the role of the WTO and regional trade agreements. The following topics will be covered during this course: 1. Introduction to Trade and Trade Policy 2. Comparative Advantage 3. Trade and Resources 4. Trade Policy Instruments 5. Political Economy of Trade Policy 6. Multilateral Trade Negotiations and the Rise of FTAs Learning goals: - To understand the economics of international trade and its distributional consequences. - To learn about the most frequently used trade policy instruments and their effects. - To learn about the influence of politics in shaping trade policy. - To understand the role of the WTO and regional trade agreements in the world trading system. - To acquire mathematical skills in formalizing economic models to quantify the effects of policy actions on different groups in a country. Extra: No extra costs Study materials Feenstra, R. C.: Advanced International Trade, Princeton University Press, newest edition. Krugman, P., Obstfeld, M., and Melitz, M.: International Economics, Pearson Education, newest edition. Entrance requirements Entrance requirements course enrolment: You must meet the following requirements Enrolled for one of the following degree programmes BSc2 Econometrics BSc2 Economics ECON-DIV Econometrics and Operations Research Economics and Business Economics International Bachelor Econometrics and Operations Research International Bachelor Economics and Business Economics Period Enrolment periods: Enrolment period: 1 December 2025 until 16 January 2026 23:59 Unenrolment: until 16 January 2026 23:59 Period of education: 29 december 2025 until 28 februari 2026 Assessment Assessment materials: The topics which are covered during the lectures. Assessments (result in OSIRIS): Test weight: 100 Assessment: Resit opportunity