2015_16
Educational guide 
Faculty of Business and Economics
A A A 
english 
Bachelor's Degree in Finances and Accounting
 Subjects
  WORLD ECONOMY
   Contents
Topic Sub-topic
UNIT 1. Introduction.
 1.1. Reasons for trade.
1.2.Trade flows, movement of people (migration) and movement of capital (FDI) nowadays.

UNIT 2. Trade and technology: the Ricardian model.
2.1. Absolute advantage and comparative advantage.
2.2. Trade and wages.
2.3. Application: Labor productivity and wages.
2.3. Other applications.

UNIT 3. Gains and losses from trade: the specific-factor model.
3.1. Mobile and specific factors.
3.2. Determination of wages.
3.3. Earning of capital and land.
3.4. Redistributive effects of trade.
3.5. Applications.

UNIT 4. Trade and resources: the Heckscher-Ohlin model.
 4.1. Model assumptions and model predictions.
4.2. Application: the Leontief paradox.
4.3. The effect of trade on factor prices.
4.4. Model extensions: many goods, factors and countries.
4.5.More empirical tests of the model.

UNIT 5. Movement of labor and capital between countries.
5.1. Migration.
5.2. Foreign Direct Investment (FDI).
5.3. Applications.
5.4. Gains from migration and FDI: theory and empirical evidence.

UNIT 6. Intra-industry trade: economies of scale and perfect competition.
6.1. Monopolistic competition.
6.2. Trade and monopolistic competition.
6.3. Applications: the gravity equation and the adjustment costs due to the opening to trade.

UNIT 7. Foreign outsourcing of goods and services.
7.1. The value chain and outsourcing.
7.2. Application: outsourcing and the skilled-unskilled wage premium.
7.3. A simple model of outsourcing.
7.4. Gains from outsourcing.
7.5. Outsourcing of services.

UNIT 8. Trade policy I: tariffs and quotas under perfect competition.
8.1. A brief history of WTO and the key provisions of GATT.
8.2. Tariffs for a large and a small country.
8.3. Quotas for a large and a small country.
8.4. Applications: the Multifibre arrangment and others.

UNIT 9. Trade policy II: tariffs and quotas under imperfect competition.
9.1. Tariffs and quotas with a monopoly at home.
9.2. Infant industry protection.
9.3. Applications.
9.4. Tariffs with a foreign monopoly.
9.5. Dumping and the policy response to dumping.

UNIT 10. Trade policy III: export subsidies in agriculture and high-technology industries.
10.1 Agricultural export subsidies in a large and a small country.
10.2. Agricultural production subsidies.
10.3. High-technology export subsidies.
10.4. Applications.

UNIT 11. International agreements: trade, labor and the environment.
11.1. Multilateral and regional trade agreements.
11.2. Trade creation and trade diversion.
11.3. International trade agreements and labor issues.
11.4. International trade agreements and the environment.
11.5. Applications.