Course content

The course provides an introduction to international trade. The first part treats the theory of comparative advantages with an emphasis on the consequences on economic welfare, income distribution, and industry composition. The second part deals with intra-industry trade based on imperfect competition and economies of scale. The last part is on trade policy

Learning outcome

Knowledge
You learn
- economic theory about international trade and international division of production
- driving forces behind international trade and international mobility of factors of production
- why international trade gives welfare gains and has distributional consequences
- the importance of "comparative advantages"
- causes of intra-industry trade and the importance of economic geography
- the relationships between trade, industry structure and patterns of specialization
- the importance of different types of economies of scale in production
- the effects of trade policies for countries and industries
- the role of the World Trade Organization (WTO)

Skills
You should be able to
- use graphs and some algebra to analyze economic questions related to international trade
- master general equilibrium theory in order to understand relationships between industry structure, product prices, and factor prices
- understand interrelated forces in single markets and analyze trade policy effects
- analyze the impact of trade on industry structure and welfare
independently judge arguments about effects of international trade

General competence
You should be able to
- follow economic reasoning related to the course in the public debate and professional reports

Learning methods and activities

2 hours of lectures every week and 2 hours of practical assignments every other week. Compulsory activity: 1 approved term paper. The term paper can be written as a joint project by up to four students.

Compulsory assignments

• One approved term paper.

Recommended previous knowledge

SØK1000, SØK1001, SØK1002, SØK1011 and SØK1012

Required previous knowledge

None

Course materials

Announced at the beginning of the term.

Credit reductions