BASM 530 The International Trading Environment

Exactly how global is the global economy? This course analyzes the forces that determine the pattern of trade (who exports what to whom) and of the actions governments and firms may take to alter it. What determines the competitiveness of nations? How significant are country differences in productivity and endowment? Answers are found in a broad range of models, from David Ricardo's theory of comparative advantage, over neoclassical and modern theories of international trade, to Michael Porter's "diamond" model of national competitiveness. Another central theme in this course involves the instruments governments use to conduct trade policy. We evaluate the various justifications offered for interfering with the "natural" pattern of trade, and analyze the GATT (now the WTO), NAFTA, and other institutions in this context. Foreign exchange markets are also briefly surveyed in this course. Finally, we look at the question if we live in a "borderless" world or if the transaction costs of international business are still much higher than those associated with domestic business.

Instructor Biography - Werner Antweiler

Course Outline - Class of 2019 (updated July 28, 2017)