Instituto Tecnológico Autónomo de México (ITAM)

Centro de Investigación (CIE)

International Trade Theory

Instructor: Rahul Giri
Lecture Location: Room 101 (Rio Hondo)
Day/Time: Tuesday & Thursday - 4pm to 5:30pm
Office Hours: Monday 11:00am - 12:00pm, Wednesday 4:00pm - 5:00pm
Office: CIE, Department Of Economics, ITAM Santa Teresa
E-mail: rahul.giri@itam.mx

· Syllabus

· Textbooks

I will follow two textbooks for this course:

1. Primary Textbook: International Trade: Theory and Evidence, International ed (1995) by James R. Markusen, James R. Melvin, William H. Kaempfer and Keith E. Maskus.

2. Secondary Textbook: International Economics: Theory and Policy, 7th ed. by Paul R. Krugman and Maurice Obstfeld.

· You can access the primary textbook by Markusen et al. from Prof. Markusen's site. Download it from here.

· Lecture Notes

· Topic 1: Looking at the Bigger Picture

· Chapter 1 - Why Should We Care About Trade?

· Chapter 2 - Gains from Trade

· “What Do Undergrads Need to Know About Trade?” by Paul R. Krugman (1993)

· “The United States in a New Global Economy: A Century's Perspective” by Douglas Irwin (1996)

· Topic 2: Pattern of International Trade - Who Sells What to Whom?

· Topic 2.1: Trade Due to Differences in Technology - Ricardian Trade Model

· Chapter 3 - Ricardian Model

· “Ricardo's Difficult Idea” by Paul R. Krugman

· "Trade Disputes" by Arvind Panagriya in The Economist (2004)

· Topic2.2: Trade Due to Differences in Endowment - Heckscher-Ohlin Model & Specific-Factors Model

· Chapter 4 - Heckscher Ohlin Model

· Chapter 5 - Specific-Factors Model

· "In Praise of Cheap Labor" by Paul R. Krugman (1997)

· Topic 2.3: Government Policies as Determinants of Trade

· Chapter 6 - Government Policies as Determinants of Trade

· Homework

· Homework 1: Some Basics Concepts, Gains from Trade and the Ricardian Trade Model

· Solution to Homework 1

· Homework 2: Heckscher-Ohlin Model, Specific-Factors Model and Role of Government Policies