Week 3-4: The Standard Theory of International Trade, Offer Curves, and the Terms of Trade
We will learn how relative commodity prices and the comparative advantage of nations are determined under increasing costs, discuss and show the basis and the gains from trade with increasing costs. We will learn how the equilibrium price at which trade takes place is determined by demand and supply, and show how the equilibrium price at which trade takes place is determined with offer curves. We will also discuss the meaning of the terms of trade.
Course Material
- Week 1-2: Introducing International Trade Theory, Law of Comparative Advantage
- Week 3-4: The Standard Theory of International Trade, Offer Curves, and the Terms of Trade
- Week 5-6: Factor Endowments and the Heckscher–Ohlin Theory
- Week 7-8: Economies of Scale, Imperfect Competition, Economic Growth and Trade
- Week 9: Mid Term Exam
- Week 10-11: Trade Restrictions: Tariffs, Nontariff Trade Barriers, and the New Protectionism
- Week 12-13: Economic Integration, TOT, Trade & Economic Development, WTO
- Week 14-15: The Balance of Payments, Foreign Exchange Markets, and Exchange Rates
- Week 16-17: Open-Economy Macroeconomics: Adjustment Mechanisms and Policies
- Week 18: Final Term Exam
- Chapters 10
- Department Economics
- Teacher
Dr. Jabbar Ul Haq
