INTERNATIONAL TRADE AND BUSINESS

Transcription

1 INTERNATIONAL TRADE AND BUSINESS SYLLABUS (EG:II anno Laurea Magistrale, ) Prof. Francesca Sanna-Randaccio Course description The theoretical tools provided by the course will help students to critically evaluate the current backlash against globalisation and the major changes taking place in international economic relations. The first part of the course will deal with trade theories. Initially perfect competition models explaining inter-industry trade generated by comparative advantage will be examined. Topics include the Ricardian and the Heckscher- Ohlin models. Then imperfect completion models explaining intra-industry trade amongst similar countries will be analyzed. The economics of offshoring will also be considered. The second part focuses on key aspects of commercial policy (the numerous types of protectionist measures, strategic trade policies, trade wars, international economic integration, bilateral and multilateral trade liberalization). Finally the role of multinational companies and foreign direct investment in the current process of international economic integration will be analyzed. The implications of this theoretical apparatus will be discussed examining several examples from current developments. Course objectives The course will provide students with the theoretical framework necessary to understand the drivers and effects of international trade in goods and services and of foreign direct investment. Students will learn the main theories of international trade, the key mechanisms of commercial policy and the role played by multinational companies in the contemporary process of transformation of the world economy. By the end of the course students will be able to critically evaluate the current globalisation process and the major changes taking place in international economic relations. The course aims also to develop students abilities in applying theoretical tools to recent events, by discussing in class numerous current examples. Textbook Selected chapters from: J.R. Markusen, J.R. Melvin, W.H. Kaempfer and K.E. Maskus (MMKM) International Trade: Theory and Evidence McGraw Hill, 1995 (available on line) G. Gandolfo (with contributions by F. Trionfetti) International Trade theory and Policy, 2 nd edition, Springer 2014 P. R. Krugman, M. Obstfeld and M.J. Melitz (KOM), International Trade: Theory and Policy, Pearson 2015

2 Part I: Trade theories 1 Week 1, 2) Monday 20 February 2017 International Trade and International Monetary Economics Recent Trends in International Trade, Course Outline (IMF (2016) Globalisation Insiders, Outsiders (see website); WTO (2016) World Trade Statistics 2016 (see website)). Review of Microeconomics Concepts (the Transformation Curve and the Box Diagram, Community or Social Indifference Curves, Homogeneous Production Functions of the First Degree) (Chapter 2, 3 in MMKM, Gandolfo (2014) Chapter 3 (3.1) ) 3) Monday 20 February ,5) Tuesday 21 February 2017 Review of Microeconomics Concepts (continue the Transformation Curve and the Box Diagram, Community or Social Indifference Curves, Homogeneous Production Functions of the First Degree) (Chapter 2, 3 in MMKM, Gandolfo (2014) Chapter 3 (3.1) ) General equilibrium in Closed and Open Economies (Chapter 4 in MMKM) 2 Week 6, 7) Monday 27 February 2017 General equilibrium in Closed and Open Economies (continue) (Chapter 4 in MMKM) 8) Monday 27 February ,10) Tuesday 28 February 2017 The Gains from Trade (Chapter 5 in MMKM; Gandolfo (2014) Chapter 3 (3.6)) 3 Week 11, 12) Monday 6 March 2017 International Trade amongst Different Countries (Comparative Advange) Differences in Technology: the Ricardian Model (Chapter 7 in MMKM; K-O M (2016), Chapter 3 (excluding )) 13) Monday 6 March ,15) Tuesday 7 March 2017 International Trade amongst Different Countries (Comparative Advange) Differences in Technology: the Ricardian Model (Chapter 7 in MMKM; K-O M (2016), Chapter 3 (excluding )) (continue) Assumptions and their Meaning, the Heckscher-Ohlin Theorem

3 4 Week 16, 17) Monday 13 March Assumptions and their Meaning, the Heckscher-Ohlin Theorem (continue) 18) Monday 13 March , 20) Tuesday 14 March 2017 Hypotheses, the Heckscher-Ohlin Theorem (continue) 5 Week 21, 22) Monday 20 March 2017 The Factor-Price-Equalization Theorem; the Stolper-Samuelson Theorem (trade and distribution of income within a country) 23) Monday 20 March , 25) Tuesday 21 March 2017 The Rybczynsky Theorem; Effect of Immigration in the long run 6 Week 26, 27) Monday 27 March 2017 Discussion on IMF Finance and Development, 2016, Globalization, Insiders, Outsiders 28) Monday 27 March ,30) Tuesday 28 March 2017 International Trade amongst Similar Countries (Imperfect Competition Models) Monopolistic Competition and International Trade (K-O-M (2016), Chapter 8) 7 Week 31, 32) Monday 3 April 2017 Oligopoly and International Trade ( Gandolfo (2014), 9.32) 33) Monday 3 April ,35) Tuesday 4 April 2017 Tariffs: Partial equilibrium approach (K-O-M (2015) Chapter 9; Gandolfo (2014) Chapter 10 (solo ). Chapter 11(11.7,11.8)

4 Part II : Trade Policy 8 Week 36, 37) Monday 10 April 2017 Tariff: general equilibrium approach. Offer curves, optimum tariff, tariff wars (K-O-M (2015) Chapter 9; Gandolfo (2014) Chapter 10 (solo ). Chapter 11(11.7,11.8). 38) Monday 10 April ,40) Tuesday 11 April 2017 Quotas and other non-tariff barriers. Strategic trade policies (K-O-M (2016), Chapter 9, Appendix 9A, Chapter 12 (only12.1)), (Gandolfo (2014), , ). 9 Week 41, 42) Tuesday 2 May 2017 Outsourcing and offshoring (Arndt, 1997 (escluso III); K-O-M (2016) Chapter 8) 43) Tuesday 2 May 2017 Strategic trade policies (continue) (Gandolfo (2014), , ) 10 Week 44, 45) Monday 8 May 2017 Preferential Trading Cooperation (Gandolfo (2014), Chapter 11 (11.1; ); K-O-M (2016), Chapter 10 (only )) 46) Monday 8 May , 48) Tuesday 9 May 2017 Bilateral and Multilateral Trade agreements; WTO (K-O-M (2016) 10.4; Gandolfo (2014), 11.7,11.8)) 49) Tuesday 9 May 2017 Part III: Multinational Enterprises and Foreign Direct Investments 11 Week 50, 51) Monday 15 May 2017 FDI trends Type of FDI The OLI Paradigm 52) Monday 15 May , 54) Tuesday 16 May 2017 Determinants of the multinationalization process The choice between exports and FDI with exogenous R&D (Barba Navaretti & Venables, 2004 chapters 1 and 2; World Investment Report 2016)

5 55) Tuesday16 May Week 56, 57) Monday 22 May 2017 Multinational Enterprises and Technological Innovation International Technology Transfer (intra-firm, inter-firm) (Petit & Sanna Randaccio, ) Monday 22 May ,60) Tuesday 23 May 2017 Summing Up