International Trade and Globalisation
Course taught at ENSAE (2)
This course first presents the trade theory under perfect competition. The role
of technology and of endowment differences is successively studied. The trade
content as the impact of free-trade on commodity prices, factor returns and
welfare are detailed. Next, the implications of the absence of factor mobility
between sectors is presented, as the product life-cycle theory. Finally, the
impact of trade policy under perfect competition is studied, tariff and non-tariff
barriers being compared both in cases of small and large countries.
The second part of the course follows the same map, but with the "new trade
theory", under imperfect competition. The general effects of (imperfect)
competition and of increasing returns are first presented. Then, the two
standard frameworks of trade theory under imperfect competition are studied in
details. This second part ends with the presentation of the strategic trade
policy within both contexts of price and quantity competition.
Powerpoint slides (password needed, contact me):
● Chapter 1. Introduction. PPT
● Chapter 2. Differences in Technology: The Comparative Advantage Model (Ricardo). PPT
● Chapter 3. Differences in Endowments: The Heckscher-Ohlin Model. PPT
● Chapter 4. Specific Factors: The Ricardo-Viner Model. PPT
● Chapter 5. The Product Life Cycle Theory. PPT
● Chapter 6. Trade Policy Under Perfect Competition. PPT
● Chapter 7. Trade Theory Under Imperfect Competition. PPT
● Chapter 8. The Standard Models of Trade Theory Under Imperfect Competition. PDF
● Chapter 9. Strategic Trade Policy. PPT