Global Economy & Digital Innovation

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CONTENT

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LEARNING OUTCOMES

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CONTENT

• Introduction and general concepts

  • Introduction to the world trading system
  • Trading patterns and trading flows around the world
  • Commercial specialization around the world
  • Trade comparative advantages and competitiveness
  • Comparative advantage vs absolute advantages

• The long run: growth trade inequality and development

  • Introduction to long run growth
  • Growth facts.
  • Growth and inequality
  • Growth industrial development and specialization

• The Competitiveness of Nations. The Role of Technology

  • The first obvious determinant of comparative advantages: technological differences.
  • The Ricardian Model - the role of technology.
  • The factors trade between advanced countries and poor countries.

• The Competitiveness of Nations. The Role of Factor Endowment

  • The second obvious determinant of comparative advantages: differences in factor endowment.
  • The Hecksher Ohlin Model - the main determinant for comparative advantage and trade.
  • The factors trade between labour abundant countries and capital abundant countries.

• Trade and Market Size

  • Dumping Case studies
  • Resource Trade, Outsourcing, and Product Fragmentation
  • Countries trade - factors of production.
  • Movement of capitals.
  • The key aspects of multinational firms and the problems associated.

• Tariffs Taxes, And the International Trading System

  • The tools and reasons for restricting trade (quotas, import taxes, export subsidies etc.)
  • The international trading system and its reform

• Gains from Trade Vs Pains from Trade

  • Protectionism vs free trade
  • Effects of trade policies on developing countries.
  • The key factors that are preventing poor countries from reaping the full benefits of free trade.

• Trade and the Current Account

  • National accounting implications of a country trade surplus and or deficit.
  • Link between the trade balance and lending and borrowing with respect to the rest of the world.
  • New insight on the global financial crisis.

LEARNING OUTCOMES

• By the end of the course students are expected to be able to:
  • Analyse the determinants of competitiveness of nations
  • Understand the functioning of the world trading system
  • Understand the challenges of globalisation and market integration
  • Understand the different viewpoints on the European debt crisis

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