316-301 International Trade Policy

316-202 Intermediate Microeconomics.

This subject will cover the determinants, patterns and effects of international trade within a general equilibrium framework, where the interrelationships amongst product and factor markets in an economy are explicitly taken into consideration. It deals with how trade is affected by government policies and international trading agreements. It introduces basic analytical tools for evaluating the welfare and income distributional consequences of trade policies from both an industry and national perspective. The theories are related to current issues in international economics, such as globalisation, regional trading blocs and trade policies generally in Australia and the rest of the world.

A 2-hour end-of-semester examination (80%) and a 1-hour mid-semester test (20%).

• Paul R Krugman and Maurice Obstfeld., International Economics: Theory and Policy. Fifth Edition, Addison Wesley, 2000.