international trade
（Professor Aijun Fan）
Prerequisite:international economics
introduction:
The course is offered to undergraduate students in School of Economics, Shandong University by systematically introducing to them the theory as well as the policy of international trade. Generally, the contents include but are not restricted to: International Specialization and the World Market; International Value and the World Market Prices; Laissez-faire Trade Theory and the International Trade Protection; Various International Trade Policies and Counter Measures among which there are Tariff Barriers, Non-tariff Barriers, Encouraging or Restrictive Export Measures; WTO and the Integration of the Regional Economy; International Service Trade, Technology Trade and the Protection of International Property Rights; Trade Strategy; Foreign Trade Regime of China. While giving a comprehensive lecture of the traditional trade theory, this course also delivers a generic introduction and analysis to the foremost leading advances of international trade in western countries, so that the participants could lay a solid foundation in this field of expertise via this course.
Evaluation:
Regular assignments (30%)
Final examination (70%)
Recommended Textbook:
1. Aijun Fan(ed.),International Trade, Science Press, 2009;
2. Rongjiu Xue(ed.),International Trade, Foreign Trade Education Press, 2009;
3. P. Krugman,International Economics, Renmin University of China Press, 2005
Schedule:
Week 1：Introduction.Subjects of International Trade. Various Kinds of Basic Concepts and Features of International Trade. Relationships between International Trade and Economic Development.
References:
1.Robert J. Carbaugh,International Economics, China Machine Press, 2005;
2.Bhagwati, J. N. And T.N. Srinivasan,Lectures on International Trade. Second edition. MIT Press, 1983.
Week 2:History and Current Situation of International Trade.History of International Trade. New Characteristics of Modern International Trade. Current Situation of China’s Import and Export Trade.
References:
1.Junyi Wang,International Trade(one of the series of “The Economics Textbook of Peking University and Tsinghua University” by Wei Liu and Jie Wei) China Development Press, 2003;
2.Dixit, A. K. And V. Norman,Theory of International Trade: A Dual, General Equilibrium Approach. Cambridge University Press, 1980.
Week 3:Development Strategy of Foreign Trade.Import Substitution and Export Orientation
References:
1.Joseph E. Stiglitz,Economics, Renmin University of China Press, 2000;
2.Bhagwati, J. N. (ed.),International Trade: Selected Readings. Second edition. MIT Press, 1987.
Week 4:Management Regime of Foreign Trade
References:
1.Jagdish N. Bhagwati,Advanced International Trade, Shanghai University of Finance and Economics Press, 2004;
2.Grossman, G. M. (ed.),Imperfect Competition and International Trade: Selected Readings. MIT Press, 1992.
Week 5: International Specialization and the World Market.Factors Influencing the Emergence and Development of International Specialization World Market. New Characteristics of Modern International Specialization and World Market. Factors Influencing the Change of International Value of Goods. The Effects of Law of Value in International Trade.
References:
1.GuoshengHao,International Economics, Tsinghua University Press, 2003;
2.Helpman E. and P. Krugman,Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition and the International Economy. MIT Press, 1985.
Week 6:International trade theories in western countries (Part A): Theory of the Balance of Trade, Theory of Absolute Cost.
References:
1. Paul R. Krugman,International Economics, Renmin University of China Press, 2002;
2. Helpman, E. and P. Krugman,Trade Policy and Market Structure. MIT Press, 1989.
Week 7:International trade theories in western countries (Part A): Theory of Comparative Cost, Theory of Reciprocal Demand.
References:
1. Fujita Masahisa, Paul R. Krugman,The Spatial Economy: Cites, Regions and International Trade, Renmin University of China Press, 2005;
2. Choi, E. K. and J. Harrigan, eds.Handbook of International Trade, Blackwell, 2003.
Week 8:International trade theories in western countries (Part B): Hecker-Ohlin Theory, Leontief Paradox, and international trade theories after World War II.
References:
1. Jingxiao Xue,Study of Contemporary Japanese Industrial Structure, Tientsin People’s Press;
2. Greenaway, D. (ed.),Current Issues in International Trade. Second edition. MacMillan Press, 1996.
Week 9:International trade theories in western countries (Part C): Protectionism, Ultra-Protectionism, New Protectionism, Strategic Trade Policy Theory.
References:
1. Feenstra, R.C.,Advanced International Trade: Theory and Evidence, Princeton University Press, 2003;
2. Jones, R.W. and P. B. Kenen (eds.),Handbook of International Economics, Vol. I. Amsterdam, North Holland, 1984.
Week 10:Class discussion:What is the point of learning international trade theory in western countries? How could it shed light on the formulation of current trade policy?
References:
1. Grossman, G. M. and K. Rogoff (eds.),Handbook of International Economics, Vol. III, Amsterdam, North Holland, 1995;
2. Krugman, P. R.,Rethinking International Trade.MIT Press, 1994.
Week 11:Tariff: the categories of tariff, the methods of imposing tariff, Custom Tariff Regulations, the economic effect of tariff.
References:
1. Puguang Wang, etc.,Policy and Practice of Tariff Theory, Universityof InternationalBusiness and Economics Press, 1999;
2. Krugman, P. R. (ed.),Strategic Trade Policy and the New International Economics, MIT Press, 1986.
Week 12:Non-Tariff Barriers: the characters and categories of NTB. What is the effect of the non-tariff barriers to the domestic and overseas economic development?
Referrences:
1.Grossman, G. M. and E. Helpman,Innovation and Growth in the Global Economy, MIT Press, 1991;
2.Vousden, N.,The Economics of Trade Protection, Cambridge University Press, 1990.
Week 13:Export Encouraging Measures and Export Restriction Measures: Export Encouraging Policies, categories of Special Economic Zone, commodities and methods of Export Control.
References:
1. Paul R. Krugman,International Economics, Renmin University of China Press, 2002;
2.Ethier, W.J.,Modern International Economics. Third edition, New York: W.W. Norton, 1995.
Week 14:World Trade Organization: General Agreement on Tariffs and Trade, the foundation of the WTO, the WTO’s function and Structure, the WTO’S fundamental Principle, China and the WTO.
References:
1. John H. Jackson,World Trade System, Fudan University Press, 2001
2. Brian Macdonald,World Trade System, Shanghai People’s Press, 2002
Week 15:Transnational Corporations and International Trade: the reason of the rapid growth of trade in transnational corporations, the theory of interiorization of trade in international company.
References:
1. Weizao Teng (ed.),Strategic management of international company, Shanghai People’s Press, 1992;
2. Krugman, P. and M. Obstfeld,International Economics: Theory and Policy, Sixth edition. Addison Wesley Company, 2004.
Week 16:Regional Economic Integration and International Trade: the reason why the trend of Regional Economic Integration is being intensified, Theory of Tariff Union(Zollverein), Theory of Big Market, and Theory of International Consultative Division of Labor. What are the effects of the Regional Economic Integration to the international trade?
References:
1. Leamer, E. E.,Sources of International Comparative Advantage, MIT Press, 1984;
2. Feenstra, R. (ed.),Empirical Methods for International Trade, MIT Press, 1988.
Week 17:International Service Trade: Introduction of the development of the international service trade of China and the world, the reason why the international service trade develops rapidly today, and the primary contents of the General Agreement on Trade in Service.
References:
1. Markusen, J. R., J. R. Melvin, W. M. Kaempfer and K. Maskus:International Trade: Theory and Evidence, McGraw-Hill/Irwin, 1995.
2. Bowen, H. P., A. Hollander, and J. M. Viaene,Applied International Trade Analysis, University of Michigan Press, 1998.
Week 18:Final Exam.