University of International Business and Economics
School of International Trade and Economics

COURSE CODE: ITR 301-0 INTERNATIONAL TRADE
Syllabus

　　Instructor: Guijun Lin
　　230 AdministrationBuilding
　　Phone 64493301
　　E-mail: linguijun@uibe.edu.cn
　　Office hours: Monday & Wednesday: 8:30 a.m.-- 12:00 p.m. or by appointment 

CourseObjective

This is an intermediate level course in international trade for undergraduate students. The primary is two folds. First it introduces students to the classical and neoclassical international trade theories and their extensions, with various rigorous assumptions, to explain the causes and the distribution of benefits of international trade. Second, it provides students with analytical tools to study the impacts of various trade polices. Main topics covered in this course will include classical and neoclassical international trade theories, commercial polices, factor movements, regional economic integration and, trade and economic development.

Target Students and prerequisite

This is an undergraduate course for second- or third-year undergraduate students in UIBE.? However, this course is the core course for third-year undergraduate students whose major are 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 strongly recommended.

Main Textbooks

Dennis R.Appleyard and Alfred J.Field.Jr, International Economics, McGraw-Hill Companies,Inc.2001.
薛荣久、张玮、唐宜红，《国际贸易》，对外经贸大学出版社2006

Other Reference books

James R.Markusen,James R.Melvin,Willam H.Kaempfer and Keith E.Maskus. International Trade Theory and policy, McGraw-Hill, Inc.1995
Nicholas Lardy, Foreign Trade Reform in China: 1978-1990, Cambridge University Press 1992.
Nicholas Lardy, ?Integrating China into the Global Economy, Brookings Institution, Washington D.C.2002.

Evaluation

• Class participation 　　 10 %

• 4 assignments　　　　20 %

Assignments will be available in class and from our teaching assistant (i.e. TA) after class.

• Mid-term exam 　　　　20 %

The mid-term will be held in class.

• Final exam　　　　　　50 % 

The final exam is cumulative.

Course Outline

Contents:

Part Ⅰ Trends in Global Trade

1. Trends in global trade
2. The rise of emerging economies
3. The trading blocs
4. Trade in intermediate inputs and vertical specialization

Part II Core Theory: Classic International Trade Theories

• Mercantilism and the Transition to Ricardo Theory of International Trade

1.1 Mercantilism
1.1.1Mercantilism
1.1.2 The Challenge to Mercantilism by Early Classical Writers
1.2 The Classical World of David Ricardo and Comparative Advantage
1.2.1 Absolute advantage and Problems of Using Absolute Advantage to Guide Allocation of Tasks
1.2.2 Ricardian Comparative Advantage
1.2.3 Comparative advantage and Gains from Trade
1.2.4 Representing the Ricardian Model with Production-Possibilities

• Extensions and Tests of the Classical Model of Trade

2.1 The Classical Model in Money Terms
2.2 Changes in wages and exchange rates
2.3 Multiple Commodities
2.4 Transportation Costs

Part Ⅲ Core Theory: Neoclassical Trade Theory and Other Models

1. Gains From Trade in Neoclassical Trade Theory
1.1 Autarky Equilibrium
1.2 Introduction of international trade
1.3 Minimum Conditions for Trade
1.4 Some Important Assumptions in The Analysis
2. Offer Curves and the Terms of Trade
2.1 A Country’s Offer Curve
2.2 Trading Equilibrium
2.3 Shifts of Offer Curve
2.4 Elasticity and the Offer Curve
2.5 Other Concepts of the Terms of Trade
3. Heckscher-Ohlin Theory and Empirical Tests
3.1 Supply, Demand, and Autarky Prices
3.2 Factor Endowments and the Heckscher-Ohlin Theorem
3.3 The Leontief Paradox
3.4 Heckscher-Ohlin and Income Inequality
4. Other International Trade Theories
4.1 Post-Heckscher-Ohlin Theories of Trade and Intra-Industry Trade
4.2 Economic Growth and International Trade
4.3 International Factor Movements

Part Ⅳ Trade Policy

1. Trade Policies and Their Impact
1.1 The Instruments of Trade Policy
1.2 The Impact of Trade Policies
2. Arguments for Protection
2.1 The infant Industry Argument for Protection
2.2 The Terms-of-Trade Argument for Protection
2.3Tariff to Reduce Aggregate Unemployment
2.4 Tariff to Increase Employment in a Particular Industry
2.5 Tariff to Offset Foreign Dumping
2.6 Tariff to Offset a Foreign Subsidy
3. Strategic Approaches to Trade Policy Intervention
3.1 Tariff to Extract Foreign Monopoly Profit
3.2 Economies of Scale in a Duopoly Framework
3.3 Research and Development and Sales of a Home Firm
3.4 Export Subsidy in Duopoly
3.5 Strategic Government Interaction and World Welfare
4. Political Economy of Trade Policy
5. Regional Economic Integration
5.1 Types of Economic Integration
5.2 The Static and Dynamic Effects of Economic Integration
6. International Trade and Developing Countries
6.1 An Overview of The Developing Countries
6.2 The Role of Trade in Fostering Economic Development
6.3 Trade Policy and The Developing Countries

University Grading System

The final grade will be classified as different groups as the table below shows: