14.54 | Fall 2016 | Undergraduate
International Trade

Readings

[KOM]= Krugman, Paul, Maurice Obstfeld, and Marc Melitz. International Economics: Theory and Policy. 9th ed. Addison-Wesley, 2011. ISBN: 9780132146654.

[Pop] = Buy at MIT Press Krugman, Paul. Pop Internationalism. MIT Press, 1997. ISBN: 9780262611336. [Preview with Google Books]

[Fire] = Irwin, Douglas. Free Trade Under Fire. Princeton University Press, 2015. ISBN: 9780691166254. [Preview with Google Books]

TOPIC # TOPICS READINGS
1 Introduction

[KOM] Chapters 1–2.

[Pop] “What Do Undergrads Need to Know about Trade?” p. 117.

Deardorff, Alan, and Robert Stern. “What the Public Should Know About Globalization and the World Trade Organization.” (PDF) Research Seminar in International Economics, Discussion Paper No. 460, July 2000. (Part I & II)

Irwin, Douglas. “The United States in a New Global Economy? A Century’s Perspective.” The American Economic Review 86, no. 2 (1996): 41–46.

[Fire] Chapter 1.

2 Gains from Trade, Comparative Advantage, and Terms of Trade

[KOM] Chapter 6.

Deardorff, Alan. “Benefits and Costs of Following Comparative Advantage.” University of Michigan, School of Public Policy, Research Seminar in International Economics, Discussion Paper No. 423, 1998.

[Fire] Chapter 2.

3 Technology, Factor Endowments, and Increasing Returns

[KOM] Chapters 3–5 and 7.

Krugman, Paul R. “Ricardo’s Difficult Idea.”

———. “In Praise of Cheap Labor.” Slate, March 1997.

Bastiat, Frédéric. “Petition of the Candle Makers.”

———. Economic Sophisms. Jazzybee Verlag, 2016. ISBN: 9783849687823. (Originally published in 1845)

[Pop] Krugman, Paul R., and Robert Lawrence. “Trade, Jobs, and Wages.”

Freeman, Richard. “Are Your Wages Set in Beijing?The Journal of Economic Perspectives 9, no. 3 (1995): 15–32.

[Pop] “Does Third World Growth Hurt First World Prosperity?”

[Fire] Chapter 3.

Rodrik, Dani. Has Globalization Gone Too Far. Peterson Institute for International Economics. 1997. ISBN: 9780881322415. [Preview with Google Books]

4 Trade Policy

[KOM] Chapters 9–10.

Feenstra, Robert C. “How Costly is Protectionism?The Journal of Economic Perspectives 6, no. 3 (1992): 159–78.

Baldwin, Robert E. “The Political Economy of Trade Policy.” The Journal of Economic Perspectives 3, no. 4 (1989): 119–35.

Krugman, Paul R. “Is Free Trade Passé?The Journal of Economic Perspectives 1, no. 2 (1987): 131–44.

5 Firms in the Global Economy and International Factor Movements

[KOM] Chapter 8.

Borjas, George, Richard Freeman, et al. “Searching for the Effect of Immigration on the Labor Market.” The American Economic Review 86, no. 2 (1996): 246–51.

Markusen, James R. “The Boundaries of Multinational Enterprises and the Theory of International Trade.” The Journal of Economic Perspectives 9, no. 2 (1995): 169–89.

Feenstra, Robert C. “Integration of Trade and Disintegration of Production in the Global Economy.” Journal of Economic Perspectives 12, no. 4 (1998): 31–50.

6 Trade and Development

[KOM] Chapter 11.

Krugman, Paul R. “A Raspberry for Free Trade.” Slate, November 1997.

Kristof, Nicholas D., and Sheryl Wudunn. “Two Cheers for Sweatshops.” The New York Times Magazine, September 2000.

7 Industrial Policy, Labor Standards, and the Environment

[KOM] Chapter 12.

[Fire] Chapter 4.

Brown, Drusilla, Alan Deardorff, and Robert Stern. “Issues of Environmental and Labor Standards in the Global Trading System.” In Globalization, Technological Change, and Labor Markets. Edited by Stanley W. Black. Springer, 2012, p. 235. ISBN: 9781461372530.

8 Trade Agreements

[Fire] Chapters 5–6.

Deardorff, Alan, and Robert Stern. “What the Public Should Know About Globalization and the World Trade Organization.” (PDF) Research Seminar in International Economics, Discussion Paper No. 460, July 2000. (Part III)

[Pop] “The Uncomfortable Truth About NAFTA.”

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