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Course, academic year 2023/2024
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International Trade - JPB354
Title: International Trade
Guaranteed by: Institute of Economic Studies (23-IES)
Faculty: Faculty of Social Sciences
Actual: from 2023
Semester: winter
E-Credits: 8
Examination process: winter s.:
Hours per week, examination: winter s.:2/2, Ex [HT]
Capacity: unknown / unknown (70)
Min. number of students: unlimited
4EU+: no
Virtual mobility / capacity: no
State of the course: taught
Language: English
Teaching methods: full-time
Teaching methods: full-time
Is provided by: JEB039
Additional information: http://ies.fsv.cuni.cz/en/syllab/JEB039
Note: enabled for web enrollment
Guarantor: Ing. Vilém Semerák, M.A., Ph.D.
Teacher(s): Ing. Vilém Semerák, M.A., Ph.D.
Mgr. Jiří Teichman
Class: Courses not for incoming students
Incompatibility : JEB039, JEM328
Is incompatible with: JEB039, JEM328
Files Comments Added by
download IES syllabus - International Trade 2023 v2.pdf Syllabus. Further files and details are available at the Moodle system Ing. Vilém Semerák, M.A., Ph.D.
Annotation -
Last update: Ing. Vilém Semerák, M.A., Ph.D. (30.09.2023)
This course covers, with a focus on both theory and empirics, basic topics in international (interregional) trade at undergraduate level. The course does not deal with international business methods (logistics, use of letters of credits etc.); instead it focuses on trade theory and trade policy analysis and attempts to provide some insight into the following questions:
• Why do countries (regions) trade?
• What determines which goods will be exported/imported by particular countries?
• How does trade influence welfare?
• How do trade policies influence effects of trade on economies, can they improve effects of trade on welfare?

In short, we will analyze the benefits of trading and the causes (and effects) of specialisation, and development of theoretical opinions on these issues. Next, we will review the policy instruments (tariffs, quotas, subsidies, anti-dumping measures, as well as very popular schemes for preferential treatment, i.e. customs unions, free trade areas) and options available to those who would want to analyze the effects of trade policies.
While the course resembles standard courses in International Trade Theory as taught at many other undergraduate economic programmes, we are trying to provide a bit deeper insight by including more recent advances in trade theory (models with heterogenous firms or New Economic Geography) as well as emphasis on methods useable for empirical analysis (introduction into the correct use of gravity models, brief introduction into trade policy modelling).

Please check the Moodle web for all additional information on the course (as well as for handouts and additional reading for all the lectures and seminars). The Moodle access details will be shared with all registered students at the beginning of the semester.
Aim of the course -
Last update: Ing. Vilém Semerák, M.A., Ph.D. (18.10.2015)

At the end of the course its students should:

(i)                Understand main factors which determine trade flows and effects of trade on economic structures and welfare according to mainstream economic theories.

(ii)              Understand traditional models describing effects of tariffs and quotas on national economies.

(iii)             Gain at least basic insight into the logic of latest development in trade theory (heterogenous firms).

(iv)             Know basic methods of analysis of trade flows and trade policies

Course completion requirements -
Last update: Ing. Vilém Semerák, M.A., Ph.D. (30.09.2023)

Continuous work during the course, active and honest participation in the teamwork, and successful participation in both midterm and final exams are expected from all participants.

Evaluation will be based on a midterm and final exam (in traditional "on-site" written form), two team assignments and online Moodle quizzes. The final exam will include a short (on-site) essay. 

The contribution of all the components to the final grade is as follows:

Midterm exam:                                                   20 points

Final exam:                                                        55 points

Team assignments:                                             15 points

Online Moodle quizzes:                                        10 points

Extra additional points for active participation in discussion seminars: up to 10 points

 

The final grade

Grading scale (based on the weighted average score):

A … 91 – 100 points

B … 81 – 90 points

C … 71 – 80 points

D … 61 – 70 points

E … 51 – 60 points

F … 50 points and less

 

The final exam (compulsory for all enrolled) will be scheduled for January 2024 and February 2024 (at least three options to take the exam will be provided). The dates of the exams will be announced during the first lecture. The exam will consist of a written test (sample questions are provided on Moodle website) and a brief essay.

The test will include a quiz (multiple choice questions) + solution of problem sets, mainly by means of models and graphs. The creative thinking and understanding of the problem (e.g. described by a model), will be graded higher than mere memorization of facts or formulas.

All papers/essays worked out in this course (by teams or individuals) must be original and subject to specific rules. Plagiarism will be severely punished.

 

Note on seminar participation and workload:

Seminar sessions play a key role in this effort, many of the issues discussed during the seminar can be crucial for the successful completion of the assignments as well as for maximizing the chances of succeeding in the exam. Regular attendance of the seminar sessions is therefore strictly recommended.

The course workload corresponds to its weight (8 credits), which implies the calculated average time load to students of 242 hours (this includes lectures, seminars, work on assignments, final team papers as well as studying for the final exam).

Literature -
Last update: Ing. Vilém Semerák, M.A., Ph.D. (18.10.2015)


Basic text:

KRUGMAN, P.R., OBSTFELD M., MELITZ M.J. International Economics - Theory and Policy. 10th edition. Pearson. 2014. ISBN 978-0133423648 or newer editions.

Alternative texts or texts useable for specific topics: 

HELPMAN, E. Understanding Global Trade. Belknap Press, 2011. ISBN-10: 0674060784, ISBN-13: 978-0674060784

PUGEL, T.A.: International Economics. 14th edition. McGraw-Hill Irwin, ISBN 978-0-07-3375757-5

 

Following online textbook is also relevant for our course: 

S. Suranovic - International Economics Study Center: http://internationalecon.com/

 

Please check the Moodle website of the course for latest details. It also contains handouts and links to other materials.

Requirements to the exam -
Last update: Ing. Vilém Semerák, M.A., Ph.D. (30.09.2023)

Continuous work during the course, active and honest participation in the teamwork, and participation in both midterm and final exams are expected from all participants.

Evaluation will be based on a midterm and final exam (in traditional "on-site" written form), two team assignments and online Moodle quizzes. The final exam will include a short (on-site) essay.

The contribution of all the components to the final grade is as follows:

Midterm exam:            20 points

Final exam:                 55 points

Team assignments:      15 points

Online Moodle quizzes: 10 points

Extra additional points for active participation in discussion seminars: up to 10 points

Syllabus -
Last update: Mgr. Michaela Čuprová (20.11.2019)

More detailed information, as well as handouts, data files or additional materials for the lectures and seminars, will be gradually published via the Moodle system. Basic introduction to the use of the Moodle system will be provided during the first session.

 

Topics that will be discussed during the lectures/seminars:

  1. Introduction. Trade data and trends.
  2. Model of comparative advantage (Ricardo) and its extensions.
  3. Neoclassical models - the role of differences in factor endowments. Specific factor model.
  4. Heckscher-Ohlin model: derivation of the Leamer diagram. Stolper-Samuelson theorem. Factor Price equalization. Rybczynski theorem.
  5. Empirical tests of trade theory. Leontief paradox. Intra-industry trade. Alternative theories of international trade (Product cycles, Linder's overlapping demands).
  6. New theory of international trade: Krugman model with monopolistic competition and increasing returns to scale.
  7. Introduction to the "New new" theory - models with heterogeneous firms (Melitz).
  8. Introduction to the New Economic Geography (NEG)
  9. Trade policy: basic instruments, partial equilibrium models.
  10. Trade policy: general equilibrium, large country issues.
  11. Economic integration: customs unions and free trade areas. Trade creation and trade diversion effects.
  12. Models with mobility of factors of production.
  13. Current issues in international trade.
 
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