International Trade Theory

The International Trade Theory course offers a foundational exploration of the principles, models, and mechanisms that govern global trade and capital flows. Designed at a basic level, the course equips participants with the analytical tools to understand classical and modern trade theories, assess trade patterns, and evaluate the macroeconomic implications of international transactions.
The curriculum is structured into four comprehensive modules. Module 1 introduces the fundamentals of international trade, trade linkages, balance of payments, and national income accounting. Module 2 delves into traditional trade theories, including the Mercantilist, Smithian, Ricardian, and Heckscher-Ohlin models, as well as newer frameworks like the gravity model and the standard trade model. Module 3 focuses on firm-based trade theories, highlighting innovation, competitiveness, and the role of firm-level dynamics in shaping trade outcomes. Module 4 covers international finance, including the foreign exchange market, exchange rate dynamics, and macroeconomic policy coordination under floating exchange rates.
Supported by a robust reading list featuring seminal texts and contemporary research, the course bridges theoretical foundations with empirical insights. It prepares participants to critically analyze trade flows, understand the role of institutions and firms in global markets, and engage with current debates on trade policy and economic development.