International Trade : Theory and policy

Course Content:

Unit 1

Introduction ,Importance and nature of the study of international economics, Salient feature of International Trade ,Advantage of International Trade. Inter-Regional and international trade.

Unit 2 Theories of International Trade Adam Smith’s theory of absolute advantage, Ricardian theory, Heckscher- Ohlin model, New trade theories.

Unit 3Commercial Policy Free Trade policy instruments, Protection Policy , quota, tariff, non-tariff barriers, Devaluation ,Exchange Control ,WTO and trade policies in developing countries.

Unit 4 - Terms of Trade Meaning, types – Net Barter, Gross Barter, Income, Single Factoral,  Double Factoral, Real Cost and Utility Terms of Trade. Concept of offer curve, determination of terms of trade, trends of terms of trade, terms of trade with respect to developing countries .Intra-Inter Industries.

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