International Trade Policy 2400-ICU2ITP
The course covers the following topics:
No. 1. Trade policy under perfect competition: tariffs
Basic tariff analysis: partial equilibrium approach: small and large country, general equilibrium effects, optimal tariff, effective rate of protection, infant-industry protection.
No. 2. Trade policy under perfect competition: non-tariff measures (QRs and VERs)
Non-tariff measures: Comparison of tariffs with quantitative restrictions (QR's) under perfect competition; import licensing, voluntary export restraints (VER's).
No. 3: Trade policy instruments under perfect competition: subsidies and anti-dumping
Dumping and A-D procedures, Reasons for dumping, production and export subsidies and countervailing duties.
No. 4: The impact of technical standards on trade flows
The role of standards in international trade, standardization union, empirical estimates
No. 5: Import tariffs and monopolistic markets
Tariff against foreign monopoly, market equilibrium under domestic monopoly, rent extraction.
No. 6: Reciprocal dumping and import protection under oligopoly
Reciprocal dumping, impact on market structure, welfare analysis
No. 7: Strategic trade policy: competition under Cournot
No. 8: Strategic trade policy: competition under Bertarnd
Strategic trade policy depending on mode of competition (Bertrand competition)
No. 9: Strategic trade policy: competition and R&D rivalry
No. 10. Applied Trade Policy Analysis
Estimating trade effects, The Armington model (products differentiated according to the place of production), Framework for analysis under partial and general equilibrium
No. 11: Political economy: neo-classical approach and systematization
No. 12: Political economy: probabilistic approach
Probabilistic approach to political economy, Protection for sale, endogenous lobbies.
No. 13. Rules of international trading system
The principle of non-discrimination and reciprocity as the best rules for international trade negotiations.
No. 14 Multilateral trading system: the role of GATT/WTO
Advantage of international negotiation, basic principle of non-discrimination and reciprocity, "bound" tariffs, the role of GATT/WTO system in post war trade liberalization.
Type of course
KW01, KW02, KW03, KW04, KW05, KU01, KU02, KU03, KU04, KU05, KU06, KU07, KK01, KK02, KK03
For the binding reading list for each lecture refer to the extended syllabus at the Programme website.
The important advanced textbooks, which will be used during the course (some chapters will serve as a main reading) are:
- Rivera-Batiz L, Oliva M-A. (R-B-O), International Trade. Theory, Strategies and Evidence. Oxford Univ. Press, 2003.
- Feenstra R. C., Advanced International Trade, Theory and Evidence, Princeton Univ. Press 2004.
- Bowen H.P., Hollander A., Viane J.M (BHV), Applied International Trade Analysis, MacMillan Press, London, 1998.
- Helpman E., Krugman P., Trade Policy and Market Structure, MIT Press, 1989.
- Francois J., Reinhert K. (F-R), Applied Methods for Trade Policy Analysis. A Handbook, Cambridge Univ. Press, 1997.
Information on level of this course, year of study and semester when the course unit is delivered, types and amount of class hours - can be found in course structure diagrams of apropriate study programmes. This course is related to the following study programmes:
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: