MMD 208E - International Trade Policies

Course Objectives

The primary objective of this course is to equip you with the analytical tools necessary to evaluate the causes and consequences of international trade. By the end of the term, you will be able to apply formal models—such as the Ricardian and Heckscher-Ohlin frameworks—to predict trade patterns and assess how the movement of goods affects income distribution. Furthermore, you will gain the critical skills needed to analyze the efficacy of various trade policy instruments and understand the complex political and economic trade-offs that govern global commercial relations.

Course Description

This course provides a comprehensive exploration of the mechanisms driving global commerce, moving from classical foundations to modern complexities. We begin by examining core theoretical frameworks, such as the Ricardian model of comparative advantage and the Heckscher-Ohlin model, to understand how differences in labor productivity and resources shape trade patterns. As we progress, the curriculum expands beyond traditional theories to address how economies of scale, firm-level decisions, and the rise of multinational enterprises redefine the international location of production in a hyper-connected global economy.

Beyond the "why" of trade, the course shifts focus to the practical and often contentious world of International Trade Policy. You will analyze the instruments governments use to regulate trade—such as tariffs and quotas—and dive into the political economy that dictates these decisions. By evaluating the unique challenges faced by developing nations and debating current controversies like outsourcing and trade equity, you will develop a nuanced perspective on how policy shapes the distribution of wealth and influence across borders.