International Trade: Theory and Policy

Of the many factors that influence a country?s economy, its trade policies are one of the biggest. This free online course on Introduction to International Trade: Theory and Policy will take you through the subject of international trade and what informs these policies. You will learn about key factors including import quotas, economies of scale, lobbying, and producer surplus and the role each of them play in the import-export industry.

What You Will Learn In This Free Course

Trade Issues: History, Institutions, and Legal Framework

In this module, you will be introduced to International trade and will learn about some of the very important aspect of this subject matter. This module will help you learn about the history of international trade, the legal framework involved in it and the different institutions that help drive international trade.

The Ricardian Theory of Comparative Advantage

This module presents the first formal model of international trade: the Ricardian model. It is one of the simplest models, and still, by introducing the principle of comparative advantage, it offers some of the most compelling reasons supporting international trade. Learners will learn some of the surprising outcomes of the Ricardian model.

The Pure Exchange Model of Trade

The pure exchange model develops a simple story: What if one person who possesses one type of good meets up with another person who possesses another type of good? What could we say about two people trading apples for oranges? Having looked at the Ricardian model, this model will give you another perspective of trade.

Economies of Scale and International Trade

One important motivation for international trade is the efficiency improvements that can arise because of the presence of economies of scale in production. In this module, we will be looking at how economies of scale can affect international trade.

Factor Mobility and Income Redistribution

This module continues the theme of income redistribution as a consequence of international trade. The focus here is the effect of factor immobility. This module asks, ?What happens if free and costless factor mobility does not hold?? The answer is provided by the results of the immobile factor model.

Trade Policy Effects with Perfectly Competitive Markets

In this module, you will learn about the various effects of a country’s trade policies on the economy especially in industries with perfectly competitive markets.; Module

Import and Export

In this module, you will learn about the price and welfare effects of import activities on an economy. This module will help the learner understand the different yardsticks with which countries of the world make import and export decisions.

Political Economy and International Trade

Having gone through very important topics on international trade in the previous modules, this module will expose the learner to the relationship between the system of government and international trade.; Module

Course assessment