ME2702 Globalization and Trade

At least 120 ECTS with a minimum of 30 ECTS in mathematics/economics and documented proficiency in English B or equivalent (TOEFL, IELTS e.g.)

The course is based on the increasingly intertwined global economy and highlights important changes affecting globalization in the last hundred years. The causes of globalization and its long and short run implications are covered. The analysis is based on theoretical models that help us understand the different relationships that drive globalization, trade patterns and changes in trade flows between countries and regions. Important elements of the course include innovation, knowledge diffusion, foreign direct investment (FDI) and multinational corporate location decisions and their impact on globalization and growth. The course provides students with the necessary theoretical and empirical tools to analyze and predict globalization, specialization and international and regional trade.

Important elements of the course include:

• Static and dynamic comparative advantages
• Spatial preferences and specialization
• One-and two-way trade
• Spatial price equilibrium
• Barriers
• Specialization, agglomeration and regional/national growth
• International and regional migration patterns
• FDI

Learning outcomes. After completed course, students shall be able to:

• Describe the processes of globalization and demonstrate knowledge of the political, social and economic impacts
• Describe the development of international trade and the relevant trade policy institutions
• Describe and assess the relevance of various trade theories
• Analyze the effects of various forms of trade
• Apply fundamental macro-, micro-, and international economic theory to analyze globalization
• Describe and analyze multinationals importance to globalization and localization of economic activity
• Identify factors that promote or hinder globalization
• Assess the implications of globalization for economic growth
• Critically review and reflect on the ideas in the academic literature dealing with globalization