| International Trade |
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| UoS Code | ECOS3006 |
| Credit points | 6 |
| Offered | Semester 1 |
| Prerequisites | Either (ECOS2001 or ECON2001) or (ECOS2901 or ECON2901) |
| Prohibitions | ECON3006 |
| Lectures | 1 x 2 hr lecture per week and 1 tutorial hour per fortnight |
| Assessment | 1 Mid semester exam, final exam |
| Description | This unit of study provides a systematic analysis of the theory of international trade and trade policy. Initially differences between countries are emphasised as the source of trade and the gains from trade. Models that are examined include the Classical-Ricardian model, the Heckscher-Ohlin model and the Specific-Factors model. Next economics of scale and imperfect competition are introduced as sources of trade and gains from trade. The unit concludes with an examination of empirical studies aimed at testing trade theories. The analysis of trade policy begins with a discussion of the instruments of trade policy, in particular, tariffs and quotas and their effect on welfare. This discussion is then extended to the case of imperfect competition and strategic trade policy. |
| This unit of study is available as part of the following major subject areas |
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