Tutor: Mr. Wenxuan Zhong <wenxuan.zhong@adelaide.edu.au>


Madeleine Pemberton: madeleinekpemb@gmail.com

The purpose of this course is to provide students with a thorough grounding in the theory of international trade as well as international trade policy and to demonstrate the relevance of the theory in the analysis of (a) existing patterns of international trade and what determines them, (b) the conduct of trade policy and (c) the economic implications of international trade and trade policy both for individual economies such as Australia and the wider international community.

 

On successful completion of this course, students will be able to:

1. Compare at the level of formal analysis the major models of international trade and be able to distinguish between them in terms of their assumptions and economic implications. Employ the principle of comparative advantage and its formal expression and interpretation within different theoretical models
2. Apply partial equilibrium and (where required) general equilibrium models in analysing the economic effects of (a) trade policy instruments such as tariffs, quotas, export subsidies, (b) retaliatory measures such as anti-dumping duties and countervailing duties and (c) the creation of regional trading arrangements such as free trade areas, customs unions and common markets.
3. Distinguish and critically analyse the main arguments for protection and conversely be able to critically evaluate the relevance and realism of arguments for free trade, taking into account the costs and benefits of trade policy measures on different sections of the community and the implications for the formulation of trade policy.
4. Identify major recent developments in the world trading system and be able to critically analyse key issues raised both by the current round of WTO negotiations and by the spread of regional trading arrangements.
5. Form the relationship between international trade theory and the observed practice of trade through evidence based analysis. Understand how the relationship among trade policy, trade practice and geopolitics can lead to sub-optimal welfare and growth outcomes.

1) International Trade: Theory and Evidence by Markusen, Melvin, Kaempfer and Maskus, Mcgraw Hill, 1995

*** This textbook is available free of charge and may be downloaded from: https://www.researchgate.net/publication/46446596_International_Trade_Theory_and_Evidence

2) International Trade, Feenstra and Taylor, Macmillan, 2017

This is a course in international trade theory and policy. As such, almost any advanced text on trade can be useful as authors often present similar material in varying and creative ways. You should not hesitate to refer to differing sources should you need further clarification beyond the above two texts.

For the mathematical representations as well as more rigorious treament of the models discussed, an excellent resource is by Robert Fenstra, Advanced International Trade, Macmillan.

MyUni - http://www.myuni.adelaide.edu.au 

Other online Resources:

WTO: http://www.wto.org 
UNCTAD: http://www.unctad.org 
OECD: http://www.oecd.org 
International Center for Trade and Sustainable Development: http://www.ictsd.org 
The World Bank: http://www.worldbank.org 
Alan Deardorff’s Glossary of International Economics Terms: http://www.personal.umich.edu/~alandear/glossary

Learning in this course is through lectures, tutorials, and personal study.

The lectures will provide you with the necessary understanding of the material to be able to solve the exercises you will be given during tutorials or exams.

Tutorials represent an important learning component of the class. Students are expected to work through the assignments and prepare solutions to be discussed during the tutorial time.

Lectures: 2 Hours per week
Tutorials: 1 Hour per week

Study textbook 4 hours per week
Prepare homework answer 4 hours per week

Teaching & Learning Activities	Related Learning Outcomes
Lectures	1-8
Tutorials	1-8

Lecture Schedule

Part I	Introduction	Chapters
Wk 1-2	Introduction -    Feenstra & Taylor Technical Concepts -   Markusen, et.al.,	1 1 - 4
Wk 3	Why do countries trade? -   Markusen, et.al.	5 - 6
Part II	Theoretical Analysis of International Trade
Wk 4-5	The Classical Model: Differing Technologies -    Markusen, et.al.   Feenstra & Taylor	7 2
Wk 5-6	The Heckscher-Ohlin Model  -   Markusen, et.al.   Feenstra & Taylor	8 4
Wk 7	The Specific Factors Model -   Markusen, et.al.   Feenstra & Taylor	9 3
	Mid Semester Examination
Wk 8-9	Government Policies as the Determinants of Trade -   Markusen, et.al.	10
Wk 9-10	Imperfect Competition as the Determinant of Trade and the Gains from Trade -   Markusen, et.al.   Feenstra & Taylor	11 6
Wk 10	Increasing Returns to Scale -   Markusen, et.al.,   Feenstra & Taylor	12 6
Part III	Trade Policy
Wk 11	Tariffs  -   Markusen, et.al.	15
	Quotas and Other Non-tariff Barriers -   Markusen, et.al.	16
Week 12	Imperfect Competition, Increasing Returns and Strategic Trade Policy -   Markusen, et.al.	17
	Preferential Trade Areas   Markusen, et.al.	18

Assessment Task	Due Date/ Week	Weight	Length(Word, Time)	Learning Outcomes
Assignment	Week 8	15%	Varying	1 - 4
Mid-term Exam	Week 8	25%	80 Minutes	1 - 5
Active Participation	Weekly	10%	60 Minutes/Week	1 - 5
Weekly Quizzes	Weekly	10%	60 Minutes/Week	1 - 5
Final Exam	Exam Period	40%	180 Minutes	1 - 5
Total		100%

1. Legible handwriting and the quality of English expression are considered to be integral parts of the assessment process. Marks may be deducted in the midterm and final examinations because of poor handwriting.

2. The 11 online quizzes must be completed prior to the due date to count toward assessment. Students may make as many attempts on each quiz as he or she wishes prior to the due date and only the highest score from the attempts will be recorded. Your final quiz score will be the average of your eight best online quizzes will be counted.

3. Hurdle - Students are required to score at least 40% on the final exam to pass the course.

NOTES ON ASSESSMENT

Engagement activities (consists of online quizzes and Participation) 20%

Weekly Online Quizzes
Weekly – except week 1
The tutorial quizzes component of the assessment will be based on marks received for short online quizzes that will occur each week except week 1. Of the 11 quizzes, only the best 8 will be counted toward assessment. Prior to each quiz due date, students may make as many attempts as he or she wishes. Only the highest score from any attempt is counted.

Active tutorial Participation
Weekly – except week 1
Best of 8 would be counted out of 11

Mid-term Exam 20%
This test will assess the topics of Weeks 1-6 (inclusive). It will be 80 minutes in length. It will consist of problems similar to those discussed during tutorials and may also include multiple-choice questions. Further details regarding the date and medium would be announced in MyUni

Assignments 15%
There will be one written assignment due at the close of week 8. Details regarding the content, format, requirements and due dates for the assignment will be provided on my uni.

Tutorial Exercises - Non-graded
Weekly – except week 1
Tutorial exercises will be made available on MyUni during the week prior to the tutorial. You will be asked to prepare some exercises before going to your tutorial. Please be aware that this preparation is important as it will improve your learning during the tutorial and will contribute towards a dynamic environment where students and tutors will interact more actively with one another. These exercises are not to be submitted or graded.

Final exam 40%
This exam may assess all topics covered in the course and may use a variety of formats, including multiple-choice questions, mathematical problems, and short answer questions. Details regarding the precise structure will be posted on MyUni. 

Further details will be provided on MyUni.

1- No late assignment accepted. Exceptional circumstances will be evaluated by the lecturer in charge on a case-by-case basis and should be discussed whenever possible at least 48 hours before the due date. Failure to hand in an assignment on time will lead to a zero mark.

2 – Extensions and alternative assessment conditions for students with disabilities:
It is your responsibility to contact lecturer, in the first 2 weeks of the semester and provide them with a copy of your Access Plan.
You do not have an automatic right to extensions for assignments. You must apply for extensions in the designated way at least 2 weeks before the due date for the assignment. The usual extensions available to students with disabilities is 2 days over the regular due date of the assignments.

3 – All assignments must be submitted electronically via MyUni. Hand written assignments may be scanned for submission

4 – Each assignment should be accompanied by a cover sheet.

5 - Medical reports from only Australian registered medical practitioners are accepted. See for the list of acceptable medical practitioners: www.ahpra.gov.au.

Additional Assessment

If a student receives 45-49 for their final mark for the course they will automatically be granted an additional assessment. This will most likely be in the form of a new exam (Additional Assessment) and will have the same weight as the original exam unless an alternative requirement (for example a hurdle requirement) is stated in this semester’s Course Outline. If, after replacing the original exam mark with the new exam mark, it is calculated that the student has passed the course, they will receive 50 Pass as their final result for the course (no higher) but if the calculation totals less than 50, their grade will be Fail and the higher of the original mark or the mark following the Additional Assessment will be recorded as the final result.