5EN455

International Trade: Theory and Policy

Syllabus available here.

PPT presentations available here.

Prezi overview (mindmap) available here.
Recommended reading and resources:

Douglas A. Irwin: Against the Tide (An Intellectual History of Free Trade), Princeton University Press, 1996.

Jagdish Bhagwati: Free Trade Today, Princeton University Press, 2002.

Douglas A. Irwin: Free Trade Under Fire, Princeton University Press, 2002.


Deardorff's Glossary of International Economics: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Henry George: Protection or Free Trade, 1946.

 

References to specific reading can be found below. Unless stated otherwise, it can be found on JSTOR (free access from VSE network or through proxy; see proxy setup instructions).


Instructions on reading and other resources making up for cancelled classes this semester:

There are 3 classes (week 4 thru 6) that are cancelled this semestr. In order to make up for the workload, the list of items you are required to read or listen to is extended: it is all the items below that are in bold type (the rest is for fans or curious students).



Course outline by weeks


1.

Course requirements and general information. General remarks on economics as a guide to policy. Protectionism as a case study in theory-policy relationship.

Paul Krugman: What Do Undergrads Need To Know About Trade

Glenn Hoover: The Present State of Economic Science

Simon Newcomb: The Problem of Economic Education

Introductory

2.

Scarcity and the role of exchange / division of labor in its alleviation. Benefits, prerequisites, patterns and consequences of exchange. General Exchange Theory

3.

Price theory. Monetary aspects of exchange. Interference with exchange and its consequences. Summary.

4.

International division of labor and exchange in international trade theory.

Henry Martyn: Considerations on the East-India Trade

David Ricardo: Of Foreign Trade (Chapter 7 of his Principles), see particularly paragraphs 15, 16 and 17

James Mill: Interchange (Chapter III of his Elements), see particularly section iv, paragraphs 9-17

William Bernstein on the History of Trade (download MP3)

Heckscher-Ohlin World - HOT game

International Trade Theory (and its history)
-
THIS IS SUBJECT OF CLASSES THAT ARE CANCELLED THIS SEMESTER

5.

Price theory in international trade theory. Balance of payments theory. Interference with trade and its consequences. Conclusion on protectionism vs. free trade.

John Stuart Mill: Of International Values (Book III, Chapter XVIII of his Principles)

David Hume: Of the Balance of Trade

Paul Krugman: The Narrow and Broad Arguments for Free Trade

Steven Landsburg on Youtube on Protectionism as racism

6.

Trade Policy as Practiced by Governments

Nye on Wine, War and Trade (download MP3)

Rustici on Smoot-Hawley Tariff (download MP3)

Anne O. Krueger: Are Preferential Trading Arrangements Trade-Liberalizing or Protectionist?

World Customs Organization

World Trade Organization

F. Taussig: The Tariff History of the United States

Trade Policy (and its history)
-
THIS IS SUBJECT OF CLASSES THAT ARE CANCELLED THIS SEMESTER

7.

Jobs, Jobs, Jobs: Protectionism as Remedy to Unemployment

Frédéric Bastiat: “Petition of the Candlemakers'

Leamer on Outsourcing and Globalization (download MP3)

Boudreaux on the Economics of "Buy Local" (download MP3)

Arguments in Favor of Protectionism

8.

Running out of Money: Protectionism to Save the Balance of Payments

Frédéric Bastiat: “On Balance of Trade

Boudreaux on Globalization and Trade Deficits (download MP3)

9.

I Will if You Do: Misguided Calls for Reciprocity

10.

Not So Cheap, Please: the Logic of Dumping. The Blackboard Economics of the Optimum Tariff

Lucy Davis: Ten years of anti-dumping in the EU: economic and political targeting

Boltuck & Litan: Down in the Dumps

11.

The Economics of Temporary Protection: the Infant Industry Argument

Robert Baldwin: The Case against Infant-Industry Tariff Protection

12.

Protectionism and Development Economics

Munger on Fair Trade and Free Trade (download MP3)

13.

Does Protectionism Protect the Environment