Specific learning outcomes of the degree

K1  Describe the basic operating principles of the economy at the micro- and macroeconomic level for business management.
• K1  - Describe the basic operating principles of the economy at the micro- and macroeconomic level for business management.
  K1  - K1.4 Explain the world economy and its impact on business management.
  • K1.4 - Explain the world economy and its impact on business management.

Transversal learning outcomes of the degree

• Topic 1. Introduction.

  Reasons to trade. The importance of trade flows, people (migration), and capital (foreign direct investment) nowadays.

  Topic 2. Trade and technology: the Ricardian model.

  Absolute and comparative advantage. Trade and wages. Application: Empirical relationship between wages and productivity; evolution of average income in countries like China and India.

  Topic 3. Gains and losses from trade: the specific factor model.

  Mobile and specific factors. Determination of wages, capital income, and land rents. Redistributive effects of trade. Application: Who is more likely to oppose trade?

  Topic 4. Trade and resources: the Heckscher-Ohlin model.

  Assumptions and predictions of the model. The first empirical test of the model: the Leontief paradox. Effects of trade on factor prices. Application: again, who is more likely to oppose trade? Extensions of the model: many goods, factors, and countries. More empirical contrasts of the model.

  Topic 5. International factor movement.

  Migration and its effects on wages (and rents) in the host country. Historical episodes and quasi-experiments. Foreign direct investment (FDI) and its effects in the host country. Gains from migration and FDI: theory and empirical evidence.

  Topic 6. Intra-industry trade: economies of scale and imperfect competition.

  Monopolistic competition model. Equilibrium with trade and adjustments due to trade opening. Applications: the intra-industry trade index and the gravity equation of trade.

  Topic 7. Outsourcing of goods and services.

  The value chain and the outsourcing of activities. Application: outsourcing and the premium for skilled wages. Gains from outsourcing. Outsourcing of services.

  Topic 8. Trade policy I: tariffs and quotas under perfect competition.

  Brief history of the WTO and the international trade provisions. Tariffs for a small country and for a large country. Quotas for a small country and for a large country. Voluntary export restraints (VERs). Applications: the Multifiber Agreement, VERs in the American automotive industry.

  Topic 9. Trade Policy II: export subsidies in agriculture and high-tech industries.

  Agricultural export subsidies for a small country and for a large country. Agricultural production subsidies. Export subsidies in high-tech industries. Application: trade disputes between Airbus and Boeing.

  Topic 10. International trade agreements.

  Multilateral and regional trade agreements. Trade creation and trade diversion. Effects on welfare.

Other observations:

The use of mobile devices or any other electronic device is not permitted in the assessment tests.

Second call:

The second call consists of a single exam with a weight of 100%.

Basic bibliography

• ( Book ) Feenstra, Robert C. / Taylor, Alan M., 1964- autor / Iranzo Sancho, Susana, traductor, Feenstra, Robert C., International trade. Castellà
  Comercio internacional , 2015 Access to the CRAI

Complementary bibliography

In this subject, the use of artificial intelligence tools is not part of the teaching activities or assessment in an ordinary way. Any use in assessment activities must have been expressly indicated in the specific instructions for the activity or must have been previously authorized by the teacher. Unauthorized use of artificial intelligence tools will be sanctioned according to current regulations.