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International Trade - Theory and Empirics

By Prof. Pratap C. Mohanty   |   IIT Roorkee
Learners enrolled: 681

This course provides conceptual and theoretical framework with empirical evidences to understand recent developments in trade strategies and policy changes. Under the Pure Theory of Trade, the basis of trade, gains from trade, direction of specialization and its effects on factor of production are discussed. Various advanced theories on strategic trade and barriers are also incorporated. The discussions on Trade Policy introduce various aspects of protectionism with respect to tariff, quota, subsidies and some latest non-tariff measures (like SPSs and TBTs), trade blocs and regional trading arrangements. In short (a) to provide an analytical framework for understanding recent developments in trade issues (b) to explain country’s policy strategies to deal with the latest complexities in trade restrictions and facilitation to enhance trade.



INTENDED AUDIENCE : Under-Graduate and Graduating students in Economics, Management Studies, International Business and Strategies. Professionals and Teachers specific to this field.
PREREQUISITES Basics of Microeconomics Theory
INDUSTRY SUPPORT Consultancy, Research and Analytics, Banking, Power, Director General of Foreign Trade (DGFT), Trainees at Ministry of Commerce and Industry,  Faculties for capacity building
Summary
Course Status : Ongoing
Course Type : Elective
Duration : 12 weeks
Start Date : 18 Jan 2021
End Date : 09 Apr 2021
Exam Date : 25 Apr 2021
Enrollment Ends : 01 Feb 2021
Category :
  • Humanities and Social Sciences
Level : Undergraduate/Postgraduate



Course layout

week1: Introduction to International Trade and Protectionism 
  • introduction to Trade protectionism
  • Why Protectionism and Strategies
  • India’s International Trade: Latest Facts and Figures
  • Facts on Trade Facilitation
  • Introduction to Trade Theories: what, why and for whom trade?
week2: Classical Theories of Trade – Basis for Trade
  • Merchantalism
  • From Mercantalism to Adam Smith
  • Relative cost advantage theory
  • static to dynamic comparative advange theory
  • Empirical testing of classical theory
week3: New Theories of Trade – More Complexities
  • standard trade theory
  • H-O theory
  • HOS and income distribution
  • empirical testing of HO theory
  • extension to HO Theory
week4: Differentiated Products and Intra-Industry Trade
  • Imperfect Competition and Trade
  • Monopolistic Competition and Trade
  • Intra-industry versus Inter-Industry Trade
  • Measuring intra-industry Trade-1
  • Measuring intra-industry Trade-2
week5: Complete Versus Incomplete Specialization in Trade
  • Partial equilibrium analysis of Trade
  • offer curve
  • offer curves with cases
  • measurement of terms of trade
  • terms of trade: determinants and impacts
week6: Partial Equilibrium Analysis of Trade Protectionism – Tariff
  • trade protectionism
  • types of protections
  • Effects of Tariffs Barriers
  • Effective Rate of Protection
  • Effective protections-latest facts & Figure
week7: Non-Tariffs including TBTs and SPSs
  •  NTM recent facts
  • Types of NTBs
  • Effects of non-Tariffs Barriers
  • TBTs
  • SPS
week8: WTO: Trade Blocks and Trade Blocs
  • Trade Blocs
  • theory of customs union
  • WTO functions
  • India and WTO
  • strategic trade policy-conclusion
Week9: BoP and Foreign Exchange Market
  • Trade and Balance of Payment
  • Trends of India's BoP
  • Functions of Foreign Exchange Market
  • Types of Foreign Exchange Rates
  • Exchange Rate Determination
Week10: Trade and Foreign Exchange Market
  •  Monetary Approach to the Balance of Payments and Exchange Rates
  • Exchange Rate Dynamics
  • Exchange Rate in the Long run
  • Exchange Rate in the Short run
  • Capital Mobility and the Trilemma of the Exchange Rate Regime
Week11: Open Economy Macroeconomics
  • Adjustment with Fixed and Flexible Exchange Rates
  • Stability of Foreign Exchange Markets
  •  J-Curve Effect
  • Exchange Rate Pass-Through
  • International Macroeconomic Policy: IMF, Optimum Currency Area
Week12: Trade and Economic Development
  • Import Substitution versus Export Orientation
  • East Asian Miracle-I
  • East Asian Economic Miracle-II
  • Trade and Development-post Covid-I
  • Trade and Development- Post Covid-II

Books and references

  • Krugman & Obstfeld (KO): International Economics: Theory and Policy, Pearson, 10 th edn.
  • Dominick Salvatore; (DS): International Economics, Wiley-India, 11th Edition
  • Robert Carbough; (RC): International Economics: Cengage Learning, 11th Edition
  • Mikic, Mia and John Gilbert (2009), “Trade Statistics in Policymaking - A Handbook of Commonly Used Trade Indices and Indicators”, Economic and Social Commission for Asia and the Pacific.
  • World Trade Organization, ‘International Trade Statistics’, (ITS), Geneva, various years.
  • Other readings during lecture ppts.

Instructor bio

Prof. Pratap C. Mohanty

IIT Roorkee
Dr. Pratap Mohanty is presently a faculty member in the Economics discipline of Dept. of Humanities and Social Sciences, IIT Roorkee. He has over twelve years of teaching and research experience from reputed universities and institutions. Prior to IIT Roorkee, he was associated as Assistant Professor with Indian Institute of Foreign Trade (IIFT), New Delhi. While in IIFT, he was among the faculty members to train the trade professionals including IFS and IRS probationers. He has been teaching the paper ‘International Trade’ over six years to Masters and under graduate students. He was also a visiting professor and instructor for the paper ‘International Economics’ at IIM Indore

Course certificate

The course is free to enroll and learn from. But if you want a certificate, you have to register and write the proctored exam conducted by us in person at any of the designated exam centres.
The exam is optional for a fee of Rs 1000/- (Rupees one thousand only).
Date and Time of Exams: 25 April 2021 Morning session 9am to 12 noon; Afternoon Session 2pm to 5pm.
Registration url: Announcements will be made when the registration form is open for registrations.
The online registration form has to be filled and the certification exam fee needs to be paid. More details will be made available when the exam registration form is published. If there are any changes, it will be mentioned then.
Please check the form for more details on the cities where the exams will be held, the conditions you agree to when you fill the form etc.

CRITERIA TO GET A CERTIFICATE

Average assignment score = 25% of average of best 8 assignments out of the total 12 assignments given in the course.
Exam score = 75% of the proctored certification exam score out of 100

Final score = Average assignment score + Exam score

YOU WILL BE ELIGIBLE FOR A CERTIFICATE ONLY IF AVERAGE ASSIGNMENT SCORE >=10/25 AND EXAM SCORE >= 30/75. If one of the 2 criteria is not met, you will not get the certificate even if the Final score >= 40/100.

Certificate will have your name, photograph and the score in the final exam with the breakup.It will have the logos of NPTEL and IIT Roorkee.It will be e-verifiable at nptel.ac.in/noc.

Only the e-certificate will be made available. Hard copies will not be dispatched.

Once again, thanks for your interest in our online courses and certification. Happy learning.

- NPTEL team


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