KUK - LMS

Syllabus

MODULE NO / UNIT	COURSE SYLLABUS CONTENTS OF MODULE	NOTES
Course Code: M-BECOC -011 Course Name: International Trade And Finance-I
1	Classical Trade Theories Mercantilism; Theories of Absolute and Comparative Advantage (Real and opportunity Cost approaches); Gains from Trade (Offer Curve Analysis), Term of Trade and its Computation. Neo Classical Trade Theories Heckscher-Ohlin Model, Factor Price Equalization Theorem, Empirical Verification of H.O. theory, Effect of Growth on Trade: Immiserating Growth, Ryzbczynski Theorem. Reading List • Batra, R. N. (1973).Studies in the Pure Theory of International Trade. St. Martin's Press, August. • Bhagwati, J. N. (1987).International trade: Selected readings. MIT Press, Cambridge. • Ethier, W. J. (1995).Modern International economics. W.W. Norton & Co. • Heffernan, S. & Sinclair, P. (1991).Modern International economics. Wiley-Blackwell. • Jhonson, H. (1958).International trade & economic growth. Harvard University Press, Cambridge. • Lindert, P. H. &Pugel, T. A. (2008).International economics.McGraw-Hill.
2	New Trade Theories Kravis and Linder Theory of Trade, Posner’s Imitation Gap, Vernon’s Product Life Cycle Theory, Intra-Industry Trade: Causes, emergence and measurement; intra industry Trade models: Neo. H.O Models, Neo-Chamberlin models, Neo-Hotelling models; Oligopolistic models of Intra Industry Trade: Brander-Krugman Model, Reciprocal Dumping Models, Gravity Model, Porter Diamond Model, Empirical work in intra-industry Trade: Balassa Index, Grubel-Lloyd Index, Acquino Index, Bergstrand Index. Reading List • Borkakoti, J. (1998). International trade: Causes & Consequences. MacMillan, London. • Helpman, E. & Krugman, Paul R. (1989). Trade policy and market structure. The MIT Press. • Krugman, Paul R. (1994). Rethinking international trade. MIT Press. • Vernon, Raymond (1966). International Investment and International Trade in the Product Cycle. Quarterly Journal of Economics, 80(2), 190-207.
3	Trade in Services Emerging pattern of services trade-The scope and potential of services trade in developing countries-GATS; Trade in Factors of Production and in Intermediate Goods-Capital inflow and welfare; Emigration versus capital inflow-Fragmentation, Outsourcing and trade. Trade vs non-trade goods. Reading List • Cattaneo, O., Engman, M., Saez, S. & Stern, Robert M. (Eds.). (2010). International Trade in Services: New Trends and Opportunities for Developing Countries. The World Bank. • Findlay, C. & Warren, T. (Eds.). (2013). Impediments to Trade in Services: Measurement and Policy Implications. Routledge, New York. • Mattoo, A., Stern, Robert M. & Zanini, Gianni (Eds.).(2008). A Handbook of International Trade in Services. Oxford University Press. • Panizzon, M., Pohl, N. & Sauve, P. (Eds.). (2008). GATS and the Regulation of International Trade in Services. Cambridge University Press.
4	Trade Policy Free trade and Protection; Tariffs, Quotas and Non-Tariff barriers; Effects of tariff - Metzier Paradox, Optimum Tariff, Effective rate of Protection, Quotas and other non-tariff barriers-technical/quality/safety standards (regulations); Economic integration theory of customs union, partial and general equilibrium analysis, dynamic effects; Integration experiences-European Union, BRICS, NAFTA, ASEAN, Multilateral trade negotiations-the GATT rounds, UNCTAD and evolution of world trading arrangements, World Trade Organization and fair trade-Development Round, Trade Facilitation, Trade War. Reading List • Aggarwal, M. R. (1979). Regional Economic Cooperation in South Asia. S. Chand and Co. • Bhagwati, Jagdish (1969). Trade tariffs & growth. The MIT Press. • Bhalla, & Bhalla, (1997). Regional Blocs. Palgrave MacMillan. • Bhandari, S. (1998). WTO & Developing Countries. Deep & Deep Publications. • Corden (1971). Theory of Protection. Clarendon Press, Oxford. • Greenaway, David (1983). International trade policy: From Tariffs to the New Protectionism. Macmillan Publishers Limited, London.