Introduction

Macro – International Trade

In this course, Dr. Pierre-Louis Vezina (King’s College London) looks at the subject of international trade. In the first module, we introduce the key ideas of international trade. After this, we explore the idea of comparative advantage. Then, we look at the Hecksher-Ohlin Model. In the fourth module, we look at external economies of scale and international trade. In the fifth, we explore the idea of monopolistic competition and international trade. And then in the final two modules we examine the political economy of trade policy and the trade policies pursued in developing nations from 1945 onwards.

Introduction

In this module, we introduce the key ideas of international trade. In particular, we will focus on: (i) international trade’s role in the world economy, including a look at world trade as a percentage of GDP; (ii) how economists understand global trade flows, including the gravity trade model; (iii) the role of distance in international trade; (iv) the exceptions to the gravity law of trade; and (v) the effect of globalisation and technological change on trade.