İKT311

School of Economics and Administrative Sciences \ Economics

3

6

Compulsory

English

İKT 213

Economics

This is a course where various aspects of international trade and policy issues
are discussed within a microeconomic theory framework.

International Trade: Theory and Policy (Global Edition), 11th Edition, Pearson
or International Economics: Theory and Policy (Global Edition), 12th Edition, Pearson
both by P.R. Krugman, M. Obstfeld and M.J. Melitz

To teach causes and effects of international trade flows and the role they play in the broader context of international economic relations.

1. To analyze and explain international trade flows and make inferences from these flows.
2. To understand sources and consequences of the international cometitiveness of countries.
3. To predict effects of exogenous shocks and trade policy changes.

Week 1: Basic concepts. Gravity model: Who trades with whom?
Week 2: Absolute advantages, Comaparative advantages, Ricardian model.
Week 3:Absolute advantages, Comaparative advantages, Ricardian model.
Week 4: Absolute advantages, Comaparative advantages, Ricardian model.
Week 5: Sector specific factors model. Income distribution effects of int'l trade.
Week 6: Sector specific factors model. Income distribution effects of int'l trade.
Week 7: Heckscher-Ohlin model. Overview of inter-industry trade models.
Week 8: Heckscher-Ohlin model. Overview of inter-industry trade models.
Week 9: Internal (firm-based) and external (industry-based) economies of scale.
Week 10: Intra-industry trade: causes and consequences.
Week 11: Commercial policies. Protectionist measures and welfare losses.
Week 12: Commercial policies. Protectionist measures and welfare losses.

• Quizzes and homework assignments 30 %
• Midterm 30 %
• Final 40 %
• Attendance 10 %
• Lab 20 %