The economics of international trade involve balance of payments among nations as well as imperfect and monopolistic competition. Although the world players may have changed from the time of the Silk Route to the colonial powers in 1910 to what they are today, the underlying questions are the same: What determines the wealth of nations and what affects the health, growth, and stability of the world economy? (Image courtesy of MIT OCW. Adapted from "The World: Colonial Possessions and Commercial Highways 1910" in the Cambridge Modern History Atlas, 1912.)
This course provides a graduate-level introduction to the field of international trade. It examines the theory of international trade and foreign investment with applications in commercial policy. Topics include gains from trade, Ricardian models of technological differences, Heckscher-Ohlin models of factor endowment differences, intermediate input trade, wage inequality, imperfect competition, firm heterogeneity, multinational firms, international organization of production, dynamics, trade policy, trade and institutions, sorting in trade and FDI, and effects of geography on trade. This course is targeted to second-year PhD students in economics.
For any use or distribution of these materials, please cite as follows:
Pol Antràs, course materials for 14.581 International Economics I, Spring 2007. MIT OpenCourseWare (http://ocw.mit.edu/), Massachusetts Institute of Technology. Downloaded on [DD Month YYYY].