The purpose of this course is to provide students with the basic knowledge of international trade theories and international trade development trends in last decades. Special attention is given to international trade position of Central and Eastern Europe. This course offers an approach to the censequences of the current changes in (formerly) East-West trade for trade opportunities within the region. Important part of the course represent globalisation effects on World Trade and World Economy.

Methods of presentation: Lectures and open discussions.

Content:

1. International Trade Theories

• Historical Roots: Mercantilists, Physiocrats
• Classic Theories: Absolute and Comparative advantages - A. Smith, D. Ricardo, Theory of Terms of Trade - J.S. Mill
• Neo-classic Theories: Heckscher-Ohlin Model, Stolper-Samuelson Theorem, Leontief's paradox, Theory of opportunity costs - Haberler, Decreasing costs, Theory of production cycle
• Keynesians' contribution
• Modern Theories of International Trade: Economies of Scale, Geographical concept, Technology Gap Theory
• Protectionist Theories

2. International Trade Policy

• Main Principles: Liberalism versus Protectionism in Trade Policy
• Tariffs and non-tariffs barriers
• Export Promotion Measures
• Tools of Negotiations in International Trade Policy
• Bilateralism, Multilateralism

3. International Economic Organizations

• GATT
• World Trade Organisation
• UNCTAD
• International Financial Institutions: IMF, World Bank, IBRD, IBIS

4. Regionalism and World Trade

• EU, EFTA
• NAFTA
• CEFTA
• Regional integration and WTO

5. International Trade: Long-Term Trends

• Dynamics, Structure: commodity proportions, territorial proportions, prices, terms of trade
• Developing countries in International Trade
• International Trade Position of Central and Eastern Europe
• International Trade in Services

6. Glogalisation in World Trade and World Economy

• Macroeconomic aspects of the globalisation, its influence on trade and capital flows
• The actual situation in the global economy and its short-term forecast
• Effects of the globalisation on the microeconomic level, the emergence of global corporate networks
• Implications of the globalisation for individual economic subjects, entepreneurial strategies in a globalising world economy

Reading material:

• Lindert P. H.: International Economics, eight edition, selected parts
• Trebilcock M. J., Howse R.: The Regulations of International Trade, London, 1995, selected parts
• Trade and Development, Report, 1997, Chapter I
• Trade and Development, Report, 1997, Chapter VI
• Economic Bulletin for Europe, Vol.48 (1996), Foreign Trade of the Transition Economies
• WTO 1995, Information and Media Relations Division, WTO 1995
• World Investment Report, UNCTAD, Geneva 1996, Chapter III
• Sereghyova J.: New Features of International corporate Net-working, Acta Oeconomica Pragensia No.8/1998

Prerequisities:

BSc in Economics, Business, International or Social Studies

Instructor:

Ing. Josef Maly, Ph.D.
Department of International Trade
University of Economics Prague

Ing. Josef Maly is an assistant professor of the Department of International Trade, University of Economics Prague.

1981-1990 deputy director of division of foreign trade corporation - technical cooperation agency responsible for licensing activities in the USA, Benelux and Scandinavia

1991-1992 assistant professor of the Department of International Trade, University of Economics Prague, director of Norwegian Management Centre of University of Economics in Prague

1993-1997 financial and administrative director of Fleur de Sante, a daughter company to Oriflame Sweden, adviser to Fleur de Sante Poland and Fleur de Sante Russia

1997-1999 director of Charouz Holding, Prague - responsible for commercial and investment activities in Bosnia and Herzegovina

2000 - assistant professor of the Department of International Trade, University of Economics Prague, consultant on licensing to Patentservice, Prague

Education: University of Economics Prague, Norwegian School of Management Sandvika, Buckinghamshire College of Higher Education, St. Gilles Great Britain

How to Obtain Credits
Assessment criteria and structure:

Participation and oral presentation  40%
Midterm test                         30%
Final test                           30%

Grading:

93 - 100%  A  (Excellent)
85 -  92%  B  (Very Good)
77 -  84%  C  (Average)
69 -  76%  D  (Below Average)
61 -  68%  E  (Failure)
55 -  60%  Fx (Fail - possible to retake the exam)
54% - less F  (Fail)