International trade，as a branch of applied microeconomics, is a very important field in economics, which provides you analysis on problems in international trade. After studying this one-semester course, you are expected to learn the way professional international economists think to approach important policy problems.

This is an undergraduate course for second or third students in UIBE. However, this course is the core course for students whose major is international trade. The prerequisite is knowledge of principles of microeconomics, of macroeconomicsand advanced mathematics focusing basic calculus. Familiarity with international trade by the course of Introduction of Chinese Foreign Trade and Chinese Main Trading Partners is helpful, although not required. Some theoretical questions will be discussed in class, so reading the textbooks before class is also recommended.

Contents of this course are divided into four parts: PartⅠTrends in Global Trade; PartⅡ Core Theory-Classic International Trade Theories; Part Ⅲ Core Theory-Neoclassical Trade Theory and other Models; and Part Ⅳ Trade Policy. Each one includes 3-4 chapters and could spend three weeks for each part roughly.

At the beginning of the course, we will discuss trends in global trade. As a global view of trade is the basis of the course, you are expected to know the highlights and trend in international trade. And we will also discuss the stability of China’s approach to opening up.

Then we come to the core theories of international trade which include classic international trade theory and neoclassical trade theory. We will compare mercantilism and Ricardian model in international trade. The classic model will be more realistic by incorporating wage rates and exchange rates. On the other hand, the neoclassical trade theory provides tools of analysis and studies the impact of trade in a more rigorous and less restrictive manner. The application of neoclassical theory and later extensions constitute the basis of modern theory of international trade. We focus on the framework of Heckscher-Ohlin theorem，and main components of it：(1) Heckscher-Ohlin model (i.e. H-O model）, (2) Stolper-Samuelson theorem, (3) Rybczynsky theorem, and (4) the factor price equalization theorem。Basically, the analysis of the neoclassical theory is essentially an updating of the Ricardian analysis to include increasing costs, factors of production besides labor, and explicit demand considerations. In the following, we explore how these international prices are determined. The important analytical tool is the offer curve. And we will also talk about Heckscher-Ohlin theorem which is focused on differences in supply conditions-different factor endowments.

Finally, we will talk about trade policy. There are six trade policies that you are expected to know: (1) Trade Policies and their Impact; (2) Arguments for Protection; (3) Strategic Approaches to Trade Policy Intervention; (4) Political Economy of Trade policy; (5) Regional Economic Integration; and (6) International Trade and Developing Countries.

Enjoy yourself and try your best in this course. If you have any problem about the course, please contact me or my teaching assistant (i.e. TA).