International Trade

This is an undergraduate course for second and third year students.

Course Description

Location: 220 HG (main building)
Time: Monday 14.15 - 16:00, Wednesday 14.15 - 16:00

The course develops a general framework for understanding why countries trade, what goods they import and export, how trade affects the allocation of resources and the distribution of income, the benefits from international trade, and the implications of commercial policy. We also cover topics that are at the frontline of current policy debates, such as the effects of international trade on unemployment, on economic growth, on the role of globalization and so on.

The course is to a large degree self -contained. The only requirement is knowledge of basic micro and macro. The course follows closely the structure of the book from the suggested readings and the corresponding chapters will be reported. For further information please visit the course website or KSL.

Suggested textbooks:
R. Caves, J. Frankel, R. Jones (CFJ): World Trade and Payments, Pearson Addison Wesley, 10th edition, 2007. (Amazon)
P. R. Krugman, M. Obstfeld, M. Melitz (KOM): International Economics: Theory and Policy, 10th edition (or any other edition), 2014. (Amazon)

Learning outcome:

  1. Students can interpret and analyze the main determinants of international trade.
  2. Students know the main economic theories of international trade and can apply them to explain/understand real world patterns and policy practices.
  3. Students know the relevant empirical evidence and can interpret it through the lenses of trade theory.
  4. Students are able to evaluate topics in international trade, protectionism, and the trade-prosperity nexus.


All podcasts and solutions are now available on ilias. If you have any questions regarding the exam please contact me until Friday, May 22. For any questions regarding the material that was discussed in the lectures or the exercises I encourage you to post your question on the ilias forum. Stay Healthy!