Section I. International Trade Theory and Policy
CHAPTER 1.INTRODUCTION TO INTERNATIONAL TRADE
1.The Reasons for Intemational Trade
1. Resources reasons
2. Economic reasons
3. Other reasons
2. The Differences between International Trade and Domestic
Trade''.''
1. More complex context
2. More difficult and risky
3. Higher skills required
3.Basic Concepts Relating to International Trade
1. Visible trade and invisible trade
2. Favorable balance of trade and unfavorable balance of
trade
3. General trade system and special trade system
4. Volume of international trade and quantum of international
trade
5. Commodity composition of international trade
6. Geographical composition of international trade
7. Degree of dependence on foreign trade
CHAPTER 2.CLASSICAL TRADE THEORIES
1.Mercantilism
1. The development of mercantilist thought
2. The mercantilist economic system
3. Economic policies pursued by the mercantilists
4. Discussions
2.David Hume''s Challenge to Mercantilism
1. Assumptions of price-specie=flow mechanism
2. The price-specie-flow mechanism
.3.Adam Smith''s Theory of Absolute Advantage
1. Assumptions of Adam Smith''s theory of absolute advantage
2. Challenge to Mercantilism
3. Example
4.David Ricardo''s Theory of Comparative Advantage
1. The concept of comparative advantage
2. Example
3. Analysis of the theory of comparative advantage by using modem
tools.
CHAPTER 3.NEOCLASSICAL TRADE THEORIES.
1.Gains from Trade in Neoclassical Trade Theory
1. Increasing opportunity costs on the PPF
2. General equilibrium and gains in autarky
3. General equilibrium and gains after the introduction of
international trade ...
2.Reciprocal Demand Theory
1. A country''s offer curve
2. Trading equilibrium
3. Measurement of terms of trade
3.Factor Endowment Theory
1. Factor intensity in production
2. Factor endowments, factor prices, and comparative
advantage.,,
3. Assumptions of the factor proportions theory.,
4. The Heckscher-Ohlin theorem.:
5. An example to illustrate H-O theorem.
6. The factor price equalization theorem:
7. The Stolper-Samuelson theorem
4.The Leontief Paradox——An Empirical Test of the Factor
Proportions Theory
1. The Leontief paradox.-
2. Suggested explanations for the Leontief Paradox and related
theories
CHAPTER 4.POST-HECKSHER-OHLIN THEORIES OF TRADE
1.The Product Cycle Theory
1. The imitation lag hypothesis
2. The product cycle theory
2.The Linder Theory
1. Assumptions of the Linder theory
2. Trade comes in the overlapping ranges of product
sophistication.:
3.Intra-Industry Trade Theory
1. Explanations of intra-industry trade
2. Measurement of intra-industry trade
CHAPTER 5.IMPORT PROTECTION POLICY: TARIFFS
1.Types of Import Tariffs
1. In terms of the means of collection
2. In terms of the different tariff rates applied
3. In terms of special purposes for collection
2.The Effects of Import Tariffs
1. Concepts of consumer surplus and producer surplus
2. The welfare effects of import tariffs
3.Measurement of Import Tariffs
1. The "height" of import tariffs
2. Nominal versus effective tariff rates
CHAPTER 6.IMPORT PROTECTION POLICY: NON-TARIFF BARRIERS''"
1.Forms of Non-tariff Barriers.
1. Quantity control measures
2. Price control measures
3. Para-tariff measures
4. Finance measures
5. Anti-competitive measures.,.
6. Miscellaneous measures
.2.Effects of Non-tariffBarriers
1. The effects of an import quota
2. The effects of a subsidy to an import-competing industry
CHAPTER 7.EXPORT PROMOTION AND OTHER POLICIES
1.Export Subsidy and Production Subsidy
!. Export subsidy and its effects
2. Production subsidy and its effects.
.2.Other Export Promotion Policies
1. Devaluation of home currency.
2. Commodity dumping
3. Bonded warehouse
4. Special trade zone
5. Export promotion programs
3.Export Restrictions and Import Promotion Policies
1. Export restrictions policies
2. Import promotion policies
4.Trade Sanctions
1. Introduction to trade sanctions
2. Effectiveness of trade sanctions
CHAPTER 8.ARGUMENTS AGAINST FREE TRADE
1.Traditional Arguments against Free Trade
1. Infant industry argument.
2. Terms of trade argument
3. Balance of trade argument
4. Tariff to reduce aggregate unemployment argument
5. Fair competition argument
6. National security argument
.2.New Protectionism
1. Tariff to extract foreign monopoly profit
2. Export subsidy in duopoly
3.The Political Economy of Trade Policy
1. Median voter model
2. Collective action theory.
3. Contribution in political campaigns
CHAPTER 9.REGIONAL ECONOMIC INTEGRATION
1.Types of Regional Economic Integration
1. Preferential tariff arrangement
2. Free trade area
3. Customs union
4. Common market.
5. Economic union
2.The Static and Dynamic Effects of Regional Economic
Integration
1. Static effects of regional economic integration
2. Dynamic effects of regional economic integration
3.Economic Integration in Europe, North America and Asia
1. Economic integration in Europe
……
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