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 understand what drives
this real linkage across countries. By doing so, they 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.

Feenstra, Robert C. and Alan M. Taylor, International Economics, 2008(1st edition) or
2011(2nd edition), Worth Publishers.

Other references
Krugman, Paul, M. Obstfeld and M. Melitz, International Economics: Theory & Policy,
2011, 9th edition, Pearson Addison-Wesley.

Introductory knowledge of micro-economics is strongly recommended, either through
principles of economics course or private reading any textbooks about intermediate level of

*Course content subject to change