ECO303 INTERNATIONAL TRADE THEORY AND POLICY
| Course Code: | 3520303 |
| METU Credit (Theoretical-Laboratory hours/week): | 3 (3.00 - 0.00) |
| ECTS Credit: | 6.5 |
| Department: | Economics |
| Language of Instruction: | English |
| Level of Study: | Undergraduate |
| Course Coordinator: | Assoc.Prof.Dr. EMRE ÖZÇELİK |
| Offered Semester: | Fall Semesters. |
Course Objectives
The main objective of the course is to introduce students to classical, neoclassical and more contemporary theories of international trade. The policy implications of international trade theory also constitute a significant component of the course. It is a principal aim of this course to enable students to learn some major topics, such as: Comparative advantage; gains from international trade; the role of relative-factor endowments in shaping the patterns of trade across countries; the role of product and process innovations in international trade; theoretical and policy-related implications of economies of scale, imperfect competition, and intra-industry trade; instruments and purposes of trade policies implemented by governments; market- and welfare effects of trade policies; and arguments for and against trade policies.
Course Content
The classical theory of comparative advantage, the factor proportions theory of comparative advantage, the Hecksher-Ohlin theory of gains from trade, classical theorems of two sector trade models, trade policy and welfare analysis.
Course Learning Outcomes
As the students complete the course successfully, they will have learnt fundamental theoretical and policy-related analyses in the field of international trade. Some important questions will be addressed throughout the semester, such as:
- Why is trade generally mutually beneficial for two trading partners (in theory)?
- How does trade lead to the expansion of consumption possibilities and input-saving outcomes?
- What are the standard assumptions in different trade theories?
- What are the implications of dropping or changing those standard assumptions?
- How do countries trade with each other when the firms operate under the conditions of increasing returns scale and monopolistic competition?
- What are the effects of government interventions to free trade?
- What are the connections among international trade, national development and globalization?
Students will be able to provide theory-consistent responses to these important questions thanks to the scholarly knowledge they acquired in the context of international trade theory and policy.
Program Outcomes Matrix
| Level of Contribution | |||||
| # | Program Outcomes | 0 | 1 | 2 | 3 |
| 1 | graduate from the program as competent experts in economic theory and policy | ✔ | |||
| 2 | analyze economic and administrative problems by conceptualizing them effectively | ✔ | |||
| 3 | acquire the vocational knowledge and skills that will enable them to produce solutions to political-economic problems by using social-scientific methods | ✔ | |||
| 4 | acquire an inter-disciplinary background that will enable them to keep track of and understand societal and economic developments at both world and country scales | ✔ | |||
| 5 | contribute to scientific and societal life as individuals who are: open to technological and scientific innovations; adaptive to the continuous-learning process; responsive to societal problems; able to produce scientific solutions and proposals, and to share those with the academic world and society when necessary; and capable of internalizing and supporting free thought | ✔ | |||
0: No Contribution 1: Little Contribution 2: Partial Contribution 3: Full Contribution