Political Economy of International Trade Relations

Vztahy:

It is not possible to register for the course U16E0105 if the student is concurrently registered for or has previously completed the course 32BE-P-PETR-01 (mutually exclusive courses).

The requirement for course U16E0105 can be fulfilled by substitution with the course 32BE-P-PETR-01.

Garant předmětu:

Lecturer:

Tutor:

Supervisor:

Institute of Management Studies

Synopsis:

Throughout the course, an interesting contrast between the inspiring trade theory and the alternative instances of economic policy will be done.

Several topics dealing with the economic policy will be discussed: External Balance, Exchange Rate Policy, Free Markets vs Strategic Trade Policy.

A modern approach will tackle the Balance of Payment analysis, emphasising the good and service transactions vs the capital flows performing movements in the capital account.

The methodology introduces to students the important section of International political economy (IPE) relating to international trade. The course will focus on core issues of international trade and domestic policies, such as diverse development strategies, the role of multinational corporations, and the policies of protectionism or free trade. A set of case studies relating to the present state of affairs of international trade will be analyzed.

Requirements:

Attendance will be mandatory, and participation in discussions will be encouraged, Students must be prepared beforehand for each session, The grading process will be based on the final exam, but for the preliminary assessment the work at home will be considered.

Macroeconomics, Microeconomics, Fundamentals of Economics

Syllabus of lectures:

A comparison of different theoretical approaches inspiring the formulation of economic policy

The Ricardian Tradition and the subsequent development of the Hecksher Ohlin Model.

The New Trade Theory and the Evolution of Trade Patterns.

New Economic Geography and Regional Specialization

Intra-industry trade and the trade profile in the developed countries

Diverse explanations to the international specialization and trade patterns

Exchange rate policy and International Trade

Diverse Regimes of Exchange-Rate Policy

The Optimum Currency Areas

Dollarization as a resort for stabilizing the economy

The impossible trinity and the macroeconomic policy

Macroeconomic consistency and External Sector

Monetary disarray and external crises

The Monetary Approach of Balance of Payments

Internal balances and extern sector results

The structure of the Balance of payments

The capital account of Balance of Payments

The validity of the Strategic Trade Policy

Free markets principle vs Strategic Trade Policy

Syllabus of tutorials:

A comparison of different theoretical approaches inspiring the formulation of economic policy

The Ricardian Tradition and the subsequent development of the Hecksher Ohlin Model.

The New Trade Theory and the Evolution of Trade Patterns.

New Economic Geography and Regional Specialization

Intra-industry trade and the trade profile in the developed countries

Diverse explanations to the international specialization and trade patterns

Exchange rate policy and International Trade

Diverse Regimes of Exchange-Rate Policy

The Optimum Currency Areas

Dollarization as a resort for stabilizing the economy

The impossible trinity and the macroeconomic policy

Macroeconomic consistency and External Sector

Monetary disarray and external crises

The Monetary Approach of Balance of Payments

Internal balances and extern sector results

The structure of the Balance of payments

The Current Account and the Capital Account of Balance of Payments

The validity of the Strategic Trade Policy

Free markets principle vs Strategic Trade Policy

Study Objective:

The student sould be competent for reconciling the long tradition in the field of the Theory of Trade,

with the practical cases related with specilization and participation in the settlement of trade transactions.

To compare the formulation of Economic Policy with the underlying theoretical frame inspiring the implementation of the Economic Policy.

To handle the political-economic framework for regulating and the support of international trade relations

comprehend crucial concepts relating to international trade relations

To be informed about some actual debates and topics relating to the international trade

To understand the international trade operation, its principal actors and some substantive political issues related to it

To keep up the case analysis illustrating the diverse stances of economic policy

Study materials:

Compulsory:

Arias-Gomez, H. (2023I. Space and Poduction Specialization. In: Arias-Gomez, H. & Antosova, G. (Ed). Considerations of Territorial Planning, Space, and Economic Activity in the Global Economy. IGI Global Publisher. Hershey.

Paul Krugman , Maurice Obstfeld , Marc Melitz (2022). International Trade: Theory and Policy, Global Edition 12th Edición. Pearson.

Kruger, Anne. (2020). International Trade: What Everyone Needs to Know. Oxford University Press. Oxford.

Krugman Paul, Obstfeld Maurice and Melitz, Marc. (2017) International Economics. 10th Edition. Pearson

Paul Krugman (2008) The increasing returns revolution in trade and geography. Nobel Prize Lecture Stockholm.

Eichengreen, Barry (2019). Towards a New Enlightenment? A Transcendent Decade. Openmind. University of California, Berkeley. https://www.bbvaopenmind.com/wp-content/uploads/2018/12/BBVA-OpenMind-Barry-Eichengreen-The-Past-Decade-and-the-Future-of-the-Global-Economy.pdf

Royal Swedish Academy of Sciences. (2008). Trade and Geography Economies of Scale, Differentiated Products and Transport Cost. Internet site accessed on December 2021: http://nobelprize.org/nobel_prizes/economics/laureates/2008/index.html

Pflüger M. and Tabuchi T. (2016). Comparative Advantage and Agglomeration of Economic Activity. Institute for the Study of Labor. Discussion Paper 10273. Bonn.

Montiel Peter. (2009). International Macroeconomics. Wiley-Blackwell. New Jersey.

Brakman, Steven; Garretsen, Harry and van Marrewijk, Charles. (2009). The New Introduction to Geographical Economics. Cambridge University Press. ISBN: 9780521698030.

Steven Brakman and Harry Garretsen (2009) Trade and Geography: Paul Krugman and the 2008Nobel Prize for Economics. Spatial Economic Analysis, Vol. 4, No. 1. Routlege. pp 5-23.

Recommended:

Eichengreen, Barry. (2018). The Populist Temptation: Economic Grievance and Political Reaction in the Modern Era. New York: Oxford University Press. Oxford

Jing Linbo (2017). The Development of the Strategic Trade Policy and Its Application in China. The Chinese Economy, 50. pp. 97-111

Cordes, Alexander, Gehrke Birgit, Rammer Christian, Roman Römisch, Schliessler Paula and Wassmann Pia (2016). Identifying Revealed Comparative Advantages in an EU Regional Context. The Vienna Institute for International Economic Studies. Research Report 412. Vienna. https://wiiw.ac.at/identifying-revealed-comparative-advantages-rcas-in-an-eu-regional-context-pj-121.html.

Bilgin Orhan (2012). Strategic Trade Policy Versus Free Trade. Procedia - Social and Behavioral Sciences 58. pp. 1283 - 1292.

Giancarlo Corsetti (2008). A Modern Reconsideration of the Theory of Optimal Currency Areas. Economic Papers Directorate-General for Economic and Financial Affairs. European Commission. Brussels. https://ec.europa.eu/economy_finance/publications/pages/publication12229_en.pdf

Agenor R, Montiel Peter (2002). Development Macroeconomics. Princeton University Press. New York.

Mankiw Gregory. Macroeconomics (2010). Worth Publishers.

Mundell Robert (2003) The Significance of the Euro in the International Monetary System. American Economist. Fall. 47,2. pp. 27-39.

Mundell Robert (1999) A reconsideration of the 20th Century. Nobel Prize Lecture Stockholm.

Note:

Further information:

No time-table has been prepared for this course

The course is a part of the following study plans:

• B-EK-prez.forma od 17/18 (compulsory elective course)
• B-EM-P prezenční studium od 18/19 (compulsory elective course)
• B-EM-P prezenční studium od 19/20 (compulsory elective course)
• B-EM-P prezenční studium od 20/21 (compulsory elective course)
• B-EM-P prezenční studium od 21/22 (compulsory elective course)
• B-EM-P prezenční studium od 22/23 (compulsory elective course)