International Trade Theory and Policy

This course explores these questions through the main theories of international trade. It begins with the principle of comparative advantage and other explanations of why countries trade and which goods and services they are likely to import or export. The course then examines key topics in international integration, including: firm competitiveness (e.g., identifying industries that benefit or suffer most); income distribution (e.g., whether unskilled workers tend to lose out); and implications for economic growth and overall welfare (e.g., whether countries are ultimately better off). It also investigates the rise of global value chains and analyzes which types of firms are most likely to engage in trade. Finally, it studies the impact of government policies and interventions-such as free trade agreements, tariffs, and trade wars-from the perspectives of countries, firms, workers, and consumers. Economic models are presented in a simple, intuitive way that requires no strong background in economics, with an emphasis on clear links to current events and real-world business examples.