Microeconomics, Mathematics for Economics II, Microeconomic Theory

The goal of this class is to learn the theory of international trade and apply it to real problems of the world economy. As for the learning goals, by the end of the course students should be able to: - Understand the classical models of international trade (Ricardo and Heckscher-Ohlin) as well as the models of monopolistic competion. - Analyze the gains from trade and their redistributive effects. - Understand the relation between international trade, migration, and capital flows. - Understand the concepts of trade deficit and trade surplus, and understand its relation to investment and savings. - Analyze the effects of trade policy (tariffs and quotas) in partial equilibrium and general equilibrium. - Understand the advantages and disadvantages of regionalism and multilateralism. In terms of specific skills, by the end of the course students should be able to: - Solve trade models graphically and analytically. - Determine prices, trade volumes, and welfare effects of trade liberalization. - Calculate costs and benefits of trade liberalization and protectionism for different groups. - Calculate the costs and benefits of liberalizing migration. In terms of competences, the course focuses on: - The capacity to solve complex problems graphically and analytically. - The capacity to relate economic theory to real the real problems of the global economy. In terms of attitude, the course expects students to - Develop a critical, open and informed opinion in the debate on the effects of globalization. - Develop a scientific approach in the challenging task of analyzing complex real world problems.

K1: Acquire the knowledge, techniques and terminology specific to the field of economics, politics and international relations. K3: To know basic humanistic contents, oral and written expression, following ethical principles and completing a multidisciplinary training profile. K4: Acquire knowledge of the economic, legal, political and social reality from a comparative perspective. K6: To understand the structure of markets and the impact of public intervention on them. K7: To know and understand the main models of political, economic and social organization of States and the processes of change in contemporary societies and politics. K8: To understand the differentiating elements of international problems according to the degree of development of a country. S3: Plan and organize team work making the right decisions based on available information and gathering data in digital environments. S4: Use information interpreting relevant data avoiding plagiarism, and in accordance with the academic and professional conventions of the area of study, being able to assess the reliability and quality of such information. S5: Apply knowledge to identify with rigor, precision and scientific objectivity the social processes and possible solutions. S6: Be able to apply the scientific method to the social, political and economic questions posed by the globalized society. S7: Be able to identify, access and manage sources of information relevant to comparative analysis in the field of politics, economics and international relations. S10: Ability to gather and interpret relevant data and knowledge for the elaboration and defense of arguments on topics in their area of study. S11: Ability to discern which quantitative or qualitative research technique is the appropriate one to apply depending on the phenomenon being analyzed. C3: Ability to establish good interpersonal communication and to work in multidisciplinary and international teams. C4: Be able to engage in lifelong autonomous learning, enabling them to adapt to new situations.

The course focuses on the theory of international trade. The most important topics covered are: - Patterns of trade and specialization (from the classical models --- Ricardo and Heckscher-Ohlin --- to the more recent models of monopolistic competition) - Gains from trade - Effects of international trade on income distribution - Economic geography and regional specialization - Trade policies - WTO and trade agreements Along the way, several important real world problems will be discussed, such as the effects of offshoring on wages, the relation between trade and migration, the tension between multilateralism and regionalism, and the effect of trade liberalization on income inequality.

The course consists of theoretical lectures and sessions of problem solving. Students are expected to solve and hand in problem sets. Problem solving is essential to acquiring the knowledge and skills required by this course.