A study of trade and international economics. Considers comparative advantage, production factors, and how growth is influenced by trade and various alternative trade theories. Analysis of trade restrictions and the effect of trade on environment and political policies.
- Distinguish between international and domestic economic issues.
- Explain why seven themes recur in international economics and discuss their significance.
- Explain how the Ricardian model, the most basic model of international trade, works and how it illustrates the principle of comparative advantage.
- Explain how differences in resources can cause international trade.
- Discuss why trade often creates losers as well as winners.
- Explain the effects of tariffs and subsidies on trade patterns and the welfare of trading nations and on the distribution of income within countries.
- Detail the “dumping” arguments used by domestic industries as a basis for protectionism and explain the relationship between dumping and price discrimination.
- Discuss the role of external economies and knowledge spillovers in shaping comparative advantage and international trade patterns.
- Discuss the causes, as well as the winners and losers, from migration and labor mobility between nations.
- Articulate arguments for free trade that go beyond the conventional gains from trade.
- Evaluate national welfare arguments against free trade.
- Summarize the basic ideas behind “economic dualism” and its relationship to international trade
- Discuss the recent economic history of the East Asian countries, such as Taiwan and South Korea, and detail the relationship between their rapid economic growth and participation in international trade.
- Summarize the more sophisticated arguments for interventionist trade policy, especially those related to externalities and economies of scale.
International economics: Theory and policy (Rev: 9th ed.)
Publisher: Prentice Hall (2013)
Author: Krugman, P., Obstfeld, M., & Melitz, M.
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