Lessons
Trade Lesson 1 The World Economy and Global Trade

Overview

This lesson provides us with an overview of global trade: transactions of merchandise in the form of exports and imports, the place of trade in international economics and the balance of payments, the composition and dynamics of trade, and the link between globalization and trade. 

Relevant Learning Objectives

1. Grasp an overview of global trade: transactions of merchandise in the form of exports and imports, the place of trade in international economics and the balance of payments, the composition and dynamics of trade, and the link between globalization and trade.

Procedure

Pre-Class Assignments

  • Students read Chapters 1 and 2 of the textbook 

Possible Classroom Activities

  • Trade Lesson 1 Module Hook (0) Show the five minutes of the Youtube video to introduce students the concept of international trade. Ask students to think about the clip in a critical fashion. Who benefits from trade and why and who does not benefit and why?
  • Trade Lesson 1 PowerPoint Presentation (0) Present the PowerPoint presentation. Questions are embedded in the slides. Use the glossary to define any unknown terms
  • Trade Lesson 1 Measuring Trade in China (0) Students collect the time series data on exports and imports of China. Plot them in Excel and answer to the following questions: What does the Chinese trade pattern exhibit? and How is the Chinese trade balance (exports – imports) different from the American one?
  • Trade Lesson 1 Ethical Issue Activity on Wal-Mart (0) Students read the article on Wal-Mart and discuss the ethical implications of Wal-Mart’s expansion to China.
  • Trade Lesson 1 Review (0) Ask the students to each list one reason why international trade is important and how it affects their lives.

Resources

Optional Resources 

 

Next:  Global Trade Theory I: The Ricadian Theory of Comparative Advantage

 

Trade Lesson 2 Global Trade Theory I: The Ricadian Theory of Comparative Advantage

Overview

This lesson provides us with the understanding of the classical Ricardian trade model of comparative advantage based on labor productivity, and the relevant concepts and tools: the production possibility frontier, opportunity costs, specialization, and direction of trade.

Relevant Learning Objectives

2. Understand the classical Ricardian trade model of comparative advantage based on labor productivity, and the relevant concepts and tools: the production possibility frontier, opportunity costs, specialization, and direction of trade.

Procedure

Pre-Class Assignments

  • Students should read Chapters 3 of the textbook Principles of Microeconomics

Possible Classroom Activities

Resources 

  • Global Trade Lesson 2.pptx.
  • Mankiw, N.G. (2008). Interdependence and the Gains from Trade. Principles of Microeconomics, 5th Edition, South-Western Cengage Learning. 

Optional Resources

 

NextTrade Lesson 3 Global Trade Theory II: The Heckscher-Ohlin Model of Comparative Advantage

 

Trade Lesson 3 Global Trade Theory II: The Heckscher-Ohlin Model of Comparative Advantage

Overview

This lesson helps understand the Heckscher-Ohlin model of comparative advantage based on differences in resource endowments, and the relevant concepts and tools: the curved production possibility frontier, production and consumption decisions, and gains from trade.

Relevant Learning Objectives

3. Understand the Heckscher-Ohlin model of comparative advantage based on differences in resource endowments, and the relevant concepts and tools: the curved production possibility frontier, production and consumption decisions, and gains from trade.

Procedure

Pre-Class Assignments

  • Students should read Chapters 4 of the textbook

Possible Classroom Activities

Resources

  • Global Trade Lesson 3.pptx
  • Krugman, P.R., and Obstfeld, M. (2008). Resources, Comparative Advantage, And Income Distribution. In International Economics: Theory & Policy, 8th Edition, Pearson-Addison-Wesley. (pp 54-87). Boston: Pearson.

 

NextLesson 4 Global Trade Theory II: The Standard Trade Model

 

Trade Lesson 4 Global Trade Theory II: The Standard Trade Model

Overview

This lesson combines the ideas of the Ricardian trade model and the Heckscher-Ohlin model of comparative advantage, and derives the Standard trade model. This part describes the relevant concepts and tools: relative supply and demand, world price, and terms of trade.

Relevant Learning Objectives

4. Combine the ideas of the Ricardian trade model and the Heckscher-Ohlin model of comparative advantage and derive the Standard trade model, and the relevant concepts and tools: relative supply and demand, world price, and terms of trade.

Procedure

Pre-Class Assignments

  • Students read Chapters 5 of the textbook

Possible Classroom Activities

Resources

Optional Resources

 

Next: Lesson 5 Trade Policy Instruments

Trade Lesson 5 Trade Policy Instruments

Overview

This lesson discusses different policy instruments of international trade: tariffs, export subsidies, import quotas, and voluntary export restraint.

Relevant Learning Objectives

5. Discuss different policy instruments of international trade: tariffs, export subsidies, import quotas, and voluntary export restraint.

Procedure

Pre-Class Assignments

  • Students should read Chapters 5 of the textbook 

Possible Classroom Activities

Resources

Optional Resources

 

NextTrade Lesson 6 Trade Policy Issues

Trade Lesson 6 Trade Policy Issues

Overview 

This lesson discusses the three most important policy issues of international trade: free trade, trade liberalization in the developing world, protectionism, and the role of the World Trade Organization in globalization.  The students will dig deep into these issues to write their essays. 

Relevant Learning Objectives 

  • Discuss different policy issues of international trade: free trade, trade liberalization in the developing world, the effects of international negations, and the role of the World Trade Organization in globalization.

Procedure

Pre-Class Assignments

  • Students should read Chapters 9 and 10 of the textbook 

Possible Classroom Activities

Resources

Optional Resources