II/03 International Trade II

This module will use the tools introduced in International Trade I to further the participants’ understanding of the role of international trade for economic performance. We focus on the new insights of the recent economic literature and their obvious policy implications.
Topics covered will include the role of increasing returns and imperfect competition for trade and growth (Krugman and Melitz), the interplay between inequality, trade, and growth, in particular the winners and losers of trade liberalisation. The final topic will cover international flow of production factors: capital (FDI) and labor (migration).
Conceptual discussions in morning sessions will be followed by group discussions on material including theoretical and empirical exercises in the afternoon.
The exam at the end of the course will include short essays with analytical/graphical parts and multiple choice questions.