LEAD087 - Business Issues and Economics with a Global Eye

Course Description

In this course, you'll delve into the intricate dynamics of trade and its impact on welfare distribution. While trade theories typically posit a positive net welfare impact, disparities in distribution create patterns of resistance and support for trade policies.

You'll explore the contrast in economic trade patterns based on production efficiency vs. political economics considers the influence of interest groups on policy decisions, shaping trade outcomes.

Course Outline

In this course, you will:

• Explore trade patterns and welfare distribution through six trade theories
• Use game theory models to examine the role of interest groups in policy-making and negotiation processes
• Analyze the challenges of global trade governance, contrasting multilateral agreements with recent trends in bilateral and plurilateral trade arrangements

Topics Covered:

• Theories of trade:
  • Ricardian comparative advantage
  • The Heckscher-Ohlin model
  • The Stolper-Samuelson model
  • New trade theory
  • New new trade theory
  • National competitive advantage
• Winners and losers:
  • Analyzing the welfare effects of trade
  • Interest groups and coalitions
• The politics of trade:
  • Game theory, interest groups, and policy-making
  • Game theory, bargaining, and credible constraints
  • Realism, institutionalism, and international trade institutions

Learner Outcomes

By the end of this course, you will be able to:

• Understand the impact of trade on welfare distribution
• Analyze trade patterns through various trade theories
• Utilize game theory models to assess the role of interest groups in policy-making
• Evaluate the challenges of global trade governance
• Contrast multilateral agreements with bilateral and plurilateral trade arrangements