Foundations of International Economics and Trade Theory

Why do nations trade, and how does global commerce impact local economies? Navigating the complexities of international trade requires a solid grasp of both classic economic theories and modern empirical realities. This comprehensive text-based course guides you through the fundamental principles of international economics, helping you analyze the flow of goods, services, and capital across borders. You will start by mastering foundational terminology and classical trade theories, establishing a strong conceptual base. From there, you will explore the real-world dynamics of modern supply chains, including offshoring, multinational firms, and foreign direct investment. What you will learn: Understand the core classical and neoclassical trade models, including Ricardian and Heckscher-Ohlin theories; Analyze the economic impact of tariffs, quotas, and other policy impediments to trade; Evaluate how trade openness creates winners and losers among industries, workers, and regions; Examine modern trade patterns, including firm-level productivity differences and offshoring; Explore the fundamentals of economic geography and how transportation costs influence the location of industries. The course transitions systematically from abstract theoretical frameworks to concrete policy analysis and modern global trends. Designed specifically for beginners, this course requires no prior background in advanced economics or mathematics. Begin your journey toward understanding the economic forces that connect our globalized world.