Lecture-0 Topics in International Trade and Political Economy An overview of the course Carlos Llano

Tema 5 -SE 2 1. Introduction How deep the globalization process is?

Tema 5 -SE Figure 1.2 World Trade in Goods, 2006 ($ billions) Feenstra and Taylor: International Trade, Second Edition Copyright © 2011 by Worth Publishers

Tema 5 -SE Figure 1.3 Trade in Goods and Services Relative to GDP Feenstra and Taylor: International Trade, Second Edition Copyright © 2011 by Worth Publishers

Tema 5 -SE Figure 1.4 Average Worldwide Tariffs, 1860–2000 Feenstra and Taylor: International Trade, Second Edition Copyright © 2011 by Worth Publishers

Tema 5 -SE Figure 1.6 Foreign-Born Migrants, 2005 (millions) Feenstra and Taylor: International Trade, Second Edition Copyright © 2011 by Worth Publishers

Tema 5 -SE Foreign Direct Investment (FDI) in the World © 2014 Worth Publishers International Economics, 3e | Feenstra/Taylor 7

Tema 5 -SE Week 1 (Thursday, April 7th ) Classic and neoclassic models I: Topic: Ricardian Model. Comparative advantage. The Heckscher-Ohlin model. Computer Lab 1: The Reveled Comparative Advantages. Testing the HOH Model. STATA. Week 2: (Thursday, April 14th ). New Trade Theory Topic: Economies of Scale, Imperfect Competition, and International Trade. Computer Lab 2. Intra-industry trade using Excel and STATA. Topic: The gravity model. Applied laboratory with STATA Computer Lab 3. The gravity model. Applied laboratory with STATA. Week 3: (Thursday, April 21st). Recent developments in international trade: Topic 1: International movement of factors I: immigration, foreign investment and multinational firms. Topic 2: The New Economic Geography and International trade Schedule and syllabus

Tema 5 -SE Studding materials:  Power point presentations: Summary of the main concepts.  Photocopies for some chapters. Additional material: papers, readings... Materials AbbreviationMain References F&T Feenstra and Taylor. (2010): International Economics. Worth Publishers; 2 Ed. BGM Brakman S., Garretsen H. van Marrewijk C. (2009): The New Introduction to Geographical Economics. Cambridge University Press. FKV-1999 Fujita, M.; Krugman, P.; Venables, A. (1999): The Spatial Economy. The MIT Press. Cambridge, Massachusetts. London, England*. KO-2005 Krugman, P., Obstfeld M. and Melitz (2012): International Economics: Theory and Policy. Addison-Wesley. TWB-08 The World Bank (2008): “Reshaping economic geography”. WB report.Reshaping economic geography

Carlos Llano  Associate professor. Economics and Business School. Universidad Autónoma de Madrid (UAM-Spain).  Coordinator of the Master in International Economics at the UAM.  Fields of interest: international and interregional trade; NEG; regional and urban economics; spatial economics; macroeconomics. Who am I?  Office: E1-306  s:  Web:

Tema 5 -SE  Goal: to understand the relationship between economics and geography.  Content:  Both theoretical and empirical perspectives are covered.  We examine the relationship between economic activity, territorial location and trade, in the context of recent developments in Trade Theory and Economic Geography.  Approach:  Advanced-undergraduate level (Feenstra and Taylor, 2009; Krugman et al, 2012).  Computer Labs. Stata, etc. What is the course about?

Tema 5 -SE The course will include three kinds of activities:  Theoretical classes: Each lesson will cover a topic.  Advanced-undergraduate level (Feenstra and Taylor, 2009; Krugman et al, 2012).  3 Computer Labs: where the students will use econometric and simulation models.  Project: during the course, the students will develop a brief project using real data. The specific content of the project will be described during the course. Methodology and Grading Grading: 1. Project (50%). May-June 2. Exam (50%). May-June