On completion of the course the student will be able to:

1. identify, explain, and discuss the welfare effects and trade patterns arising when a country opens up to trade according to different trade models, including the Ricardian model, the Heckscher-Ohlin model, the Specific-Factors Model, and models based on economies of scale.
2. identify, explain, and discuss how factors of production will move internationally and within a country between industries if allowed to do so.
3. report what information is provided by empirical findings in international trade, e.g. the Leontieff Paradox.

4. apply abstract theorising in an appropriate theoretical framework to consider the essential issues in a variety of economic problems in international trade.
5. apply economic concepts that have a broad use for decision making (for example opportunity cost, equilibrium, disequilibrium, incentives, strategic thinking, the possible gains from voluntary exchange, and the relevance of marginal considerations) in the context of international trade theory.
6. critically discuss matters, questions, and situations in international trade, including the results of policy changes or other exogenous events, with rigorous argumentation for discussion (for example, critically discuss what happens to a country's welfare when tariffs increase).
7. demonstrate ideas and solve problems in international trade theory using graphical, tabular, algebraic, and calculus-based techniques

8. analyse the effect of trade policies on the welfare of different groups in society.

The aim of the course is to provide the student with basic knowledge and skills in international trade theory. The course helps the student understand the theoretical basis for the following issues: the gains from trade, how patterns of trade are determined, the effect of growth on trade, and the impact of various trade policies. The course also helps the student consider how trade theory may be applied to various real-world issues.
Important elements of the course include the following:

• Comparative advantage and the Ricardian Model,
• Income distribution and the Specific Factors Model,
• The resource endowment basis for trade patterns and the Heckscher-Ohlin Model,
• Terms of trade and its determinants,
• The effect of growth on trade,
• The inclusion of economies of scale and imperfect competition in international trade theory,
• The impact on trade of various international institutions and agreements on trade, such as the EU, NAFTA, GATT, and WTO.

Lectures and exercise sessions based on homework assignments

The teaching is conducted in English.

General entry requirements and 15 credits in Business Administration or Economics including Microeconomics (or the equivalent).

The course is graded A, B, C, D, E, FX or F.

There is one final written examination along with preliminary assessment (quizzing and/or assignment(s)) during the course. A summation of the grade on the preliminary assessment during the course (maximum 10 points) and the grade on the final examination (maximum 90 points) leads to an overall examination grade upon which the full 7.5 credits in the course is based.
The intended learning outcomes are assessed by the means shown below.

ILOs 1- 5, 7, 8 are assessed through the written exam and preliminary assessment (50%).
ILOs 6 are assessed through the written exam (50%).

Name of the Test	Value	Grading
Examination1	7.5 credits	A/B/C/D/E/FX/F

¹ Determines the final grade of the course, which is issued only when all course units have been passed.

It is the responsibility of the examiner to ensure that each course is evaluated. At the outset of the course, evaluators must be identified (elected) among the students. The course evaluation is carried out continuously as well as at the end of the course. On the completion of the course the course evaluators and course examiner discuss the course evaluation and possible improvements. A summary report is created and archived. The reports are followed up by program directors and discussed in program groups and with relevant others (depending on issue e.g. Associate Dean of Education, Associate Dean of faculty, Director of PhD Candidates, Dean and Director of Studies). The next time the course runs, students should be informed of any measures taken to improve the course based on the previous course evaluation.

Academic integrity

JIBS students are expected to maintain a strong academic integrity. This implies to behave within the boundaries of academic rules and expectations relating to all types of teaching and examination.

Copying someone else’s work is a particularly serious offence and can lead to disciplinary action. When you copy someone else’s work, you are plagiarizing. You must not copy sections of work (such as paragraphs, diagrams, tables and words) from any other person, including another student or any other author. Cutting and pasting is a clear example of plagiarism. There is a workshop and online resources to assist you in not plagiarizing called the Interactive Anti-Plagiarism Guide.

Other forms of breaking academic integrity include (but are not limited to) adding your name to a project you did not work on (or allowing someone to add their name), cheating on an examination, helping other students to cheat and submitting other students work as your own, and using non-allowed electronic equipment during an examination. All of these make you liable to disciplinary action.

• Krugman, P. R., Obstfeld, M., and Melitz, M. International Economics: Theory and Policy, Tenth edition (2015) or later edition. New York: Addison-Wesley. ISBN-13: 978-1-292-01955-0 or ISBN-10:1-292-01955-0, Chapter 1-12, pp. 1-344 and 745-758.
• Supplementary material may be used.