INTERNATIONAL TRADE POLICY

Spring Term, 2014/2015 Academic Year

Lecturer(s):

Gbor VIGVRI, assistant professor

Department:

Department of World Economy

Office hour:

TBA

Availability:

Phone number: 482-5314

Room: main building room 142 for Gbor Vigvri
Email addresses:
gabor.vigvari@uni-corvinus.hu

Prerequisites to the course:

None
Number of classes
2 (one 90 minute lecture+ 2 (one 90 minute seminar)
Class time and room
According to the Neptun
Description of the course
This conventional trade policy course covers the usual and most
important problems of trade policy related issues in the world economy.
The course starts with theoretical foundations, then moves toward the
discussion of the economic and political rationale of trade policy
interventions. The course deals with the international institutional
background of trade policies focusing mostly on the WTO. And also the
most up-to-date problems of international trade is covered, like trade in
value added and environmental problems.
Learning outcomes
By completing this course, you will
Understand the basic theories of trade;
Develop analytical skills to asses trade policy;
Evaluate state interventions in the field of trade policy;
Understand and evaluate the main functions and problems of the
international trading system.

Methodology to be used
Lectures will be partially interactive with an aim to involve students in
elaborating on topics. During seminars group works and presentations
are to be expected in order to achieve learning outcomes. Also, some
guest lecturers are to be expected.
Detailed class schedule, 1st 14th week:
Week 1: General introduction, information about the course, outline.
Reading: HB chapter 1-2
Seminar: no seminar
Week 2: Review: Trade theories and policy in nutshell, comparative
advantage and other models. Trade policy tools a short overview
Reading: Pugel chapters 2-9, HB chapter 3-4, 17, 22, 27, 28
Seminar: the role of trade on the firm level
Reading: Bernard et al article and Lo Turco and Maggioni article (see
Moodle)
Week 3: Trade policy, the pure economic aruments.
Reading: Pugel chapters 8-9, HB chapters 17, 22, 27, 28
Seminar: guest from Exim
Reading: none
Week 4: The political economy of protectionism I. State centered
approach. Trade and development: import substitution
Reading: Oatley chapters: 5 7, HB chapter 41
Seminar: industrial policy
Reading: Rodrik article (see Moodle)
Week 5: The political economy of protectionism II. State centered
approach. Export promotion strategies.
Reading: Oatley chapters: 5 7, HB chapter 42
Seminar: The Embrail case
Reading: Goldstein McGuire article (see Moodle)
Week 6: The political economy of protectionism III. Society centered
approach. Public choice and trade.
Reading: Oatley chapter: 4
Seminar: Historical examples
Reading: Gourevitch article (see Moodle)
Week 7: Mid-term
Week 8: Supply chain trade I. Theoretical overview.
Reading:
Seminar: role play of the previous seminar

Reading: none
Week 9: Supply chain trade II. Further implications
Reading:
Seminar: case studies
Reading: OECD Trade Policy Paper No. 161 (see Moodle)
Week 10: Measuring trade
Reading: WTO chapters 1-2, HB chapter 5
Seminar: workshop car industry
Reading: no reading
Week 11: WTO I. general issues
Reading: Hoekman chapter 2 3, HB chapters 6-7
Seminar: dispute settlement
Reading: Bown article (see Moodle)
Week 12: WTO II. trade in goods
Reading: Hoekman chapter 5, HB chapter 46
Seminar: GI and trade
Reading: Raustiali and Munzer article (see Moodle)
Week 13: WTO III: - trade in services
Reading: Hoekman chapter 7
Seminar: trade and environment
Reading: Harris article and Tarasofsky-Palmer article (see Moodle)
Week 14: Conclusion and summary
Seminar: discussion of presentations
Assignments:
Seminars are to be organized around topics discussed in lectures.
Therefore attendance of lectures is highly advised. In seminars various
types of assignments are to be expected. In most cases, there are going to
be a mandatory reading available for each seminars. In order to
participate in seminars, those papers must be read. In order to encourage
reading, a small summary paper must be written. In this one-two page
long paper students shall summarize the original article in 3-5 sentences,
add 1-2 questions and her own opinion. Homework is to be handed in in
class, in a printed version. In other seminars on-the-spot exercises will
be given, that should be solved alone or in group work.
There are going to be 11 seminars during the semester (no seminars on
Week 1, Week 7 (mid term) and a special seminar on week 14). Students
assessment will be based on their handed in homework, classroom
activity (participation in group works, the amount and quality of
comments made). Note, however, that in case of a mandatory reading, a
student cannot be considered as a present one without handing in the
summary required.
According to regulation You have to participate in 9 seminars at least.

The seminar work will add up to 30% (30 points) of your total points.
There will be one special seminar on week 14. On the last week you will
have the possibility to make a presentation based on the material of week
10 (Measuring trade). Further info about this is to be found on Moodle,
and this will be discussed also in class. Note, however, that the
completion of either the written or the oral assignment is mandatory for
each student for this seminar!
Assessment, grading:
The final grade is composed as follows:
Mid-term exam
35 per cent
Final exam
35 per cent
Home assignments
30 per cent
Mid-term assessment (counted as 35 per cent in the final result) will be
based upon a written exam including open questions and one essay. The
final exam (also 35%) at the end of the semester is similar, but only
covers material from the second half of the semester. Students may
retake the midterm exam without any penalty at the end of the semester,
in this case they will write their final exam from the material of the entire
semester, and this will count as 70 per cent of the final grade.
Rest of points can be earned in seminars (details see above!)
Final grades are awarded according to the following grading scale (51%:
2, 63%: 3, 75%: 4, 87%: 5). Grades are non-negotiable. Please take into
account that any complaints concerning the points of the final written
exams (except for obvious adding mistakes) will result in a re-evaluation
of the entire test.
Note, that the sum of Your mid-term and final exam points has to exceed
50% of the available points in order to get a grade!
Compulsory readings:
The material of the lectures is compulsory. Nothing will be asked on the
exam that was not discussed during a lecture.
Lecture slides and handouts can be found in the Moodle system. Please
note however, that these slides are only crude outlines of the lectures,
and they do not substitute notes taken in class or reading the textbook.
All comments and feedback concerning lectures, slides, selected readings
etc. are welcome.
Mandatory readings:
Pugel, Thomas A. (2009): International Economics, 14 th edition, Mc Graw
Hill (Pugel)
Oatley, Thomas (2012): International Political Economy, 5 th edition,
Pearson (Oatley)
Hoekman Kostecki (2008): The Political Economy of the World Trading
System. The WTO and Beyond. 3rd Edition (Hoekman)

UNCTAD WTO: A Practical Guide to Trade Policy Analysis (WTO)

Gaisford Kerr (ed.) (2007): Handbook on International Trade Policy,
Edward Elgar (HB)