Brief Course Description
1. Course Title:
Economics and international trade organizations
2. Language of Instruction:
Tiếng Việt
3. Course Code:
ECO601076
4. Credits:
2
5. Course Objectives:
6. Brief Description of Course Content:
The course content is divided into two sections: The first section studies foreign trade theory and the second one studies international trade institutions.
The first section discusses the law of comparative advantage within the framework of the Ricardo model that explains why and how foreign trade occurs among countries. The income distribution effect of foreign trade is shown by extending the Ricardo model by changing some assumptions. For example, the assumption is that the production of various types of goods requires many different inputs and specialized inputs. This model is the initial basis for discussing the political economy aspects of foreign trade policy. Then, the Heckscher-Ohlin-Samuelson model is presented to clarify the role of resource differences in foreign trade and to discuss the actual evidence and predictability. This model has made many important conclusions about the causes, trends, and impacts of foreign trade. Recent theoretical developments related to economies of scale and market structure will also be introduced in an individual model to clarify the relationship between foreign trade, industrial organization, and imperfect market structure.
The second section develops a systematic framework for analyzing foreign trade policy issues, for instance, the discussion of economic integration and the economic impact of free trade areas; monetary unions; trade negotiations, and the WTO, common principles, trade agreements, and issues related to commercial dispute resolution. This section also indicates the economic impact of several foreign trade policy instruments, discusses the political aspects of foreign trade policy, and the results of foreign trade policy in developing countries. Industrial policy and direct investment are also discussed.