The aim of this course is to give students the a conceptual basis and the necessary tools for understanding modern international trade at the intermediate level. Topics discussed in this course are: gains from trade in a classical world; the modern theory of international trade; factor price equalization; empirical tests and extensions of the pure theory model; economic growth and international trade; the nature and effects of protection; motives and welfare effects of factor movements. Each topic will be followed with evidences, examples and case studies mainly under the context of China’s international trade with the U.S. and the rest of the world.
Prerequisites:
Intermediate Microeconomics, Principles of Macroeconomics, Business Finance
Additional student cost:
None
Learning outcomes:
By the end of the course, students should be able to:
Grasp basic theories in international trade, for example, the Ricardian Model, Two-factor model (H-O Model), the Standard Model, etc.,
Understand present trade conditions in the world, especially from the viewpoint of China, for example, the trade unbalance between the U.S. and China, various trade protectionism (green trade barriers), outsourcing and processing trade, etc.;
Comprehend the reasons and impacts of trade policies, for example, the impact of WTO, regionalization in Asia-Pacific region, tax rebate and subsidy in exports, etc.
Method of presentation:
Lectures, group discussions, and PowerPoint presentations
Required work and form of assessment:
There will be a midterm, 30%, a final, 50% and 4 Assignments, 20% (5% for each).
Assignment 1: The Ricardian Model;
Assignment 2: The Two-factor Model;
Assignment 3: Economies of Scale, Imperfect Competition, and Trade
Assignment 4: Trade Policy
*Policy Memo: There will be no make-up exams. If a midterm is missed with valid excuse (i.e. illness with doctor note), I will shift the weight to your final exam (30%+50%=80%); if a final exam is missed with valid excuse, you will be asked to write a term paper as a replacement (50%).
content:
Week 1: World Trade: An Overview, Chap 2.
The formation of WTO, China’s trade performance prior to and post WTO, trade imbalance between China and the U.S.
Relevant Links: The World Trade Organization, International Trade and Development Center, National Bureau of Statistics of China
Week 2: Labor Productivity and Comparative Advantage: The Ricardian Model, Chap 3.
Case Study: Comparison of the wages in the U.S. and China, export contents (i.e. capital/labor intensive goods) of the U.S. vs. China.
Relevant Links: U.S. International Trade Commission, China Data Online
Week 3: Resources, Comparative Advantage, and Income Distribution, Chap 4, Part 1.
Week 4: Resources, Comparative Advantage, and Income Distribution, Chap 4, Part 2.
Case Study: The North-South Trade: Evidence from China’s Trade in last two decades.
Relevant Link: National Bureau of Statistics of China, UNCTAD/WTO International Trade Center
Week 5: The Standard Trade Model, Chap 5.
Case Study: Tariffs, nontrade barriers and export subsidies to China’s exporters.
Relevant Links: China Council for Promotion of Trade
Week 6: International Factor Movements, Chap 7.
Case Study: FDI in China in last two decades.
Relevant Links: International Monetary Fund, The World Bank International Trade website
Week 7: Mid-term examination.
Week 8: Economies of Scale, Imperfect Competition, and International Trade, Chap 6, Part 1.
Week 9: Economies of Scale, Imperfect Competition, and International Trade, Chap 6, Part 2.
Case Study: Intra-industry Trade and the puzzle of export content similarity between the U.S. and China.
Relevant Links: Trade Data Online, Bureau of Economic Analysis, Dept. of Commerce, Institute of Finance and Trade Economics, CASS
Week 10: The Instruments of Trade Policy, Chap 8.
Case Study: Antidumping and China’s export.
Relevant Links: UNCTAD/WTO International Trade Center, Ministry of Commence
Week 11: The Political Economy of Trade Policy, Chap 9.
Case Study: From GATT to WTO.
Relevant Link: The World Trade Organization
Week 12: Trade Policy in Developing Countries, Chap 10.
Case Study: China’s foreign trade law and customs regulations in last two decades.
Relevant Links: Ministry of Commence, Institute of Finance and Trade Economics, CASS
Week 13: Controversies in Trade Policy, Chap 11.
Case Study: Export and Environment in China.
Relevant Link: Institute of Finance and Trade Economics, CASS
Week14: Final Examination
Required readings:
Paul R. Krugman, Maurice Obstfeld, International Economics: Theory and Policy (8th Edition), Prentice Hall, 2008.
Gary Clyde Hufbauer, Yee Wong, and Ketki Sheth. US-China Trade Disputes: Rising Tide, Rising Stakes (Policy Analyses in International Economics). Institute for International Economics, 2006.
Recommended readings:
Feenstra, Robert and Alan Taylor. International Trade. Worth Publishers, 2008.
Brief Biography of Instructor:
Bo Chen is an Assistant Professor of Economics at Shanghai University of Finance and Economics. He holds a Ph.D. in Economics from Simon Fraser University, as well as an M.A. in Economics from York University, and an M.A. of Financial Economics from Huazhong University of Science and Technology. His research interests include international trade, open macroeconomics, and applied econometrics. He currently conducts research on the economic integration of the Asia Pacific region in conjunction with the Asia Pacific Foundation of Canada. Recent published works include:
“A Composite Index of Economic Integration in Asia-Pacific Region” (with Yuen Pau Woo), ADBI Papers and Proceedings (special edition for the10th Anniversary of Asian Development Bank Institute), forthcoming.
“Selection of Foreign Exchange Regime and Macroeconomic Stability in China” (with Changsheng Xu), JianHan Tribune 2002 (9), special edition. [in Chinese]
“The Intellectual Property Right System and Reform in China’s State-Owned Enterprises” (with Jianping Fei), Journal of Decision Making and Information, 1999(6). [in Chinese]
The aim of this course is to give students the a conceptual basis and the necessary tools for understanding modern international trade at the intermediate level. Topics discussed in this course are: gains from trade in a classical world; the modern theory of international trade; factor price equalization; empirical tests and extensions of the pure theory model; economic growth and international trade; the nature and effects of protection; motives and welfare effects of factor movements. Each topic will be followed with evidences, examples and case studies mainly under the context of China’s international trade with the U.S. and the rest of the world.
Intermediate Microeconomics, Principles of Macroeconomics, Business Finance
None
By the end of the course, students should be able to:
Lectures, group discussions, and PowerPoint presentations
There will be a midterm, 30%, a final, 50% and 4 Assignments, 20% (5% for each).
*Policy Memo: There will be no make-up exams. If a midterm is missed with valid excuse (i.e. illness with doctor note), I will shift the weight to your final exam (30%+50%=80%); if a final exam is missed with valid excuse, you will be asked to write a term paper as a replacement (50%).
Week 1: World Trade: An Overview, Chap 2.
The formation of WTO, China’s trade performance prior to and post WTO, trade imbalance between China and the U.S.
Relevant Links: The World Trade Organization, International Trade and Development Center, National Bureau of Statistics of China
Week 2: Labor Productivity and Comparative Advantage: The Ricardian Model, Chap 3.
Case Study: Comparison of the wages in the U.S. and China, export contents (i.e. capital/labor intensive goods) of the U.S. vs. China.
Relevant Links: U.S. International Trade Commission, China Data Online
Week 3: Resources, Comparative Advantage, and Income Distribution, Chap 4, Part 1.
Week 4: Resources, Comparative Advantage, and Income Distribution, Chap 4, Part 2.
Case Study: The North-South Trade: Evidence from China’s Trade in last two decades.
Relevant Link: National Bureau of Statistics of China, UNCTAD/WTO International Trade Center
Week 5: The Standard Trade Model, Chap 5.
Case Study: Tariffs, nontrade barriers and export subsidies to China’s exporters.
Relevant Links: China Council for Promotion of Trade
Week 6: International Factor Movements, Chap 7.
Case Study: FDI in China in last two decades.
Relevant Links: International Monetary Fund, The World Bank International Trade website
Week 7: Mid-term examination.
Week 8: Economies of Scale, Imperfect Competition, and International Trade, Chap 6, Part 1.
Week 9: Economies of Scale, Imperfect Competition, and International Trade, Chap 6, Part 2.
Case Study: Intra-industry Trade and the puzzle of export content similarity between the U.S. and China.
Relevant Links: Trade Data Online, Bureau of Economic Analysis, Dept. of Commerce, Institute of Finance and Trade Economics, CASS
Week 10: The Instruments of Trade Policy, Chap 8.
Case Study: Antidumping and China’s export.
Relevant Links: UNCTAD/WTO International Trade Center, Ministry of Commence
Week 11: The Political Economy of Trade Policy, Chap 9.
Case Study: From GATT to WTO.
Relevant Link: The World Trade Organization
Week 12: Trade Policy in Developing Countries, Chap 10.
Case Study: China’s foreign trade law and customs regulations in last two decades.
Relevant Links: Ministry of Commence, Institute of Finance and Trade Economics, CASS
Week 13: Controversies in Trade Policy, Chap 11.
Case Study: Export and Environment in China.
Relevant Link: Institute of Finance and Trade Economics, CASS
Week14: Final Examination
Paul R. Krugman, Maurice Obstfeld, International Economics: Theory and Policy (8th Edition), Prentice Hall, 2008.
Gary Clyde Hufbauer, Yee Wong, and Ketki Sheth. US-China Trade Disputes: Rising Tide, Rising Stakes (Policy Analyses in International Economics). Institute for International Economics, 2006.
Feenstra, Robert and Alan Taylor. International Trade. Worth Publishers, 2008.
Bo Chen is an Assistant Professor of Economics at Shanghai University of Finance and Economics. He holds a Ph.D. in Economics from Simon Fraser University, as well as an M.A. in Economics from York University, and an M.A. of Financial Economics from Huazhong University of Science and Technology. His research interests include international trade, open macroeconomics, and applied econometrics. He currently conducts research on the economic integration of the Asia Pacific region in conjunction with the Asia Pacific Foundation of Canada. Recent published works include:
01/11