This module will expose you to the major theories regarding why countries trade with each other and what are the costs and benefits arising from trade.
You will become familiar with the concepts and tools of analysis used in trade theory. You will also gain a critical overview of the motivations which lead countries to restrict trade and how modern multilateral institutions attempt to encourage free trade.
You will cover the following:
- the classical (Ricardian) model
- the standard model
- the neoclassical (Hckscher‐Ohlin) model
- the theory of protection
- customs unions
- political economy of trade
- Gatt principles and the WTO.