Syllabus

1. Prelude to International Trade Theories: Supply and Production Possibility
Preferences, Demand and Welfare General Equilibrium in Open and Closed
Economies The Gains from trade
2. Causes and Consequences of International Trade:
Trade Based on Absolute Advantage, Comparative Advantage and Opportunity Costs, The Standard Trade Model, Factor Endowments and the Heckscher-Ohlin Model, IntraIndustry Trade, Imperfect Competition and Increasing Returns to Scale as determinants of Trade and gains from trade, Effect of changes in tastes, per capita income and technology on Trade and gains from trade.
3. Trade Restrictions: Partial and General Equilibrium Analysis of a Tariff in a Small and a Large Country, The Theory of Tariff Structure Non-Tariff Trade Barriers and Protectionism: Import Quotas, Voluntary Export Restraints, Technical, Administrative, and Other Regulations, International Cartels, Dumping, Export Subsidies, The Political Economy of Protectionism.
4. International Trade and Economic Development: The Importance of Trade to
Development, The Terms of Trade and Economic Development, Export Instability
and Economic Development, Import Substitution versus Export Orientation, Current Problems Facing Developing Countries.
5. Economic Integration: Preferential Trade Agreements, Free Trade Agreements,
Customs Union (Trade-Creating and Trade-Diverting), Common Market and Economic Union TheEU, NAFTA, Mercosur and the FTAA, ASEAN and AFTA, Regionalism and Multilateralism.
6. International Market Institution
The Gold Standard and the Interwar Experience. The Bretton Woods System,The
GATT and WTO International Monetary Fund, Crises and Responses The World
Bank Structural Change and Adjustments.

To identify and analyse different theoretical models of international trade and
development in light of ‘real world’ situations.

To assess the impact of the economies of regional integration and multilateral
arrangements.

To obtain knowledge of key institutions and important trade policy issues in the
international economy

1. Identify and analyse different theoretical models of international trade and
development in light of ‘real world’ situations.
2. Assess the impact of the economies of regional integration and multilateral
arrangements.
3. Have knowledge of key institutions and important trade policy issues in the
international economy.

Markusen, Melvin, Kaempfer and Maskus, International Trade: Theory and Evidence, McGraw Hill

Kenneth A. Reinert, An Introduction to International Economics: New Perspectives On The World Economy, Cambridge University Press

Krugman Paul R. and Obstfeld Maurice, International Economics, Pearson Education

Salvatore Dominick, International Economics, Wiley India