Trade and Microeconomics for International Commerce

Prof. Kenneth A. Reinert

Course Description

This course provides an introduction to microeconomics and international trade for the ICP student. In the first part of the course, our main objective is to understand the basic principles of the market system underlying local, national, and international economies. Here we will assess both the desirable properties and the limitations of the market system, as well as the potential role of government. In the second part of the course, our main objective is to understand the forces behind international trade and production. Here we will assess the main causes of international trade, their effects, and the analysis of trade policies. Time permitting, we will also assess the main causes of international production from the viewpoint of an individual firm deciding upon market entry strategies.

Course Materials

Mankiw, H.G., Principles of Economics, Harcourt, 2000.

Coursepack: Selected chapters from Reinert, K.A., Windows on the World Economy: An Introduction to International Economics, Harcourt, forthcoming.

Course Topics

1. Introduction

2. The Supply and Demand Model

3. Allocative Efficiency and Taxes

4. The Theory of the Firm

5. Limitations of the the Market System and Potential Roles of Government

6. Absolute and Comparative Advantage

7. Intra-Industry Trade

8. The Politics of Trade

9. Trade Policy Analysis

10. The GATT/WTO System

11. Regional Trade Agreements

12. Foreign Market Entry and International Production

Course Requirements

Student performance will be based on a mid-term exam, a final exam, a brief paper, and class participation.