Course Description

Course Name

International Trade Theory

Session: VSOS3221

Hours & Credits

3 Credits

Prerequisites & Language Level

Taught In English

  • There is no language prerequisite for courses at this language level.


The study of international trade and finance has never been as important as it is now. These days, nations are more closely integrated through trade in goods and services, investment in each other?s economies. The global economy created by these growing real economic and financial linkages has given potential opportunities to participants in the world market as well as it has thrown up many challenges such as unprecedented series of financial crisis. So, it is important for future business leaders to cope with the global challenges and look for potential opportunities in the global market.

This course first introduces basic principles and theories of international trade and investment: Ricardian, Neoclassical trade model, New trade theory, other modern theories of international trade and the theories of foreign direct investment. Then, the course applies these theories to understand international trade flows and foreign direct investment decision particularly from the firms? viewpoint.

Textbooks (Either is okay)

  • Feenstra, Robert C. and Alan M. Taylor, International Economics, 2008(1st edition) or 2011(2nd edition), Worth Publishers.
  • Krugman, Paul, M. Obstfeld and M. Melitz, International Economics: Theory & Policy, 2011, 9th edition, Pearson Addison-Wesley.


*Course content subject to change