Learning outcomes

After completing the course, the student is expected to:

- be able to provide a survey of the structure and extent of world trade and have knowledge of how the Swedish trade pattern has changed in the last few decades

- be able to apply trade theories to explain why international trade emerges, as well as be able to show how the trade pattern is determined

- be able to present the economic gains of trade and their distribution and have a knowledge of how growth affects trade

- have a basic knowledge about the concept of trade policy and be able to show the consequences of different limitations and interventions in free trade

- be able to present how the creation of different kinds of trade cooperation affects welfare and trade patterns

- have knowledge about the environmental effects of an increase in international trade, and be able to explain different kinds of trade policy for developing countries

- be able to show the effects of an increasingly free mobility of production factors

Content

The course starts with a survey of basic trade theories, from classical theory with absolute and comparative advantages via the factor proportions theory to more recent alternative trade models. Thus, the effects on trade patterns, welfare, income distribution and growth are analysed. The advantages of free trade are then contrasted to real world protectionism. Why are customs, quotas, subsidies and other measures that constitute obstacles to trade implemented? What are the effects of an increasingly swift growth in regional trade agreements, where the EU is one of the dominating agents? One of the most important factors behind increasing internationalisation and globalisation is the increased mobility of production factors. What are the consequences of this and how is the environment affected by growing trade? What trade policy is most suitable for developing countries?

Instruction

The instruction consists of lectures with exercises

Assessment

The assessment consists of a written exam