THE UNIVERSITY OF MICHIGAN
Gerald R. Ford School of Public Policy
and
Department of Economics

PubPol/Econ 541
INTERNATIONAL TRADE POLICY

SYLLABUS
Fall 2023, Alan Deardorff
MW 8:30 AM Zoom

Contacts Class structure Text Podcasts Questions Requirements Schedule Policies Readings

CONTACTS

PURPOSE: The aim of this course is to teach you a lot about the economics -- and a little about the institutions -- of international trade and trade policy. The course is companion to SPP 542, International Finance Policy, which deals with international macroeconomic topics such as the balance of trade and balance of payments, determination of exchange rates, and international macroeconomic policies. Each course also includes some bare essentials of the other course so that if you take only one of them, you won't be lost in the world economy.

The course is mainly about trade policy. You will learn what trade policies are, how they are used by the United States and other countries, and how their use is restricted by international agreements. More importantly you will learn how to use economic modeling to understand the effects of trade policies and to quantify those effects. Along the way you will also learn about the institutions of the world economy, especially those that have to do with trade. And you will learn a little bit about the economic theories of why nations trade, why economists argue that they gain from trade, and why there are also losers from trade.

Prerequisite: PubPol/Econ 555 or equivalent course in intermediate microeconomics
Organization: The course meets twice a week, Mondays and Wednesdays, 8:30-9:50 AM, online via Zoom.
Room reserved: While the class will meet only online, some of you may need a quiet place to access it if you need to be on campus for other courses. The registrar has reserved 1220 Weill Hall for your use during the MW 8:30-9:50 class time, and you are welcome to use that space to access the course with your own laptop.

CLASS STRUCTURE

TEXTs

PODCASTS

QUESTIONS ON READINGS

REQUIREMENTS

Problem Sets   0%
Papers 45% (15% for each of three papers)
Quizzes 40% (4% for each of your top ten)
Class participation 15%
SCHEDULE

Quizzes Due every Friday 11:59 PM (Accepted late to Sat 11:59 PM with 1 point penalty)
Paper #1 Wednesday, October 4 8:30 AM
Paper #2 Wednesday, November 8 8:30 AM
Paper #3 Wednesday, December 6 8:30 AM

WRITING ASSISTANCE

FORD SCHOOL POLICIES AND EXPECTATIONS


COURSE OUTLINE AND READING LIST

NOTES: 1. Click title for citation; click Online for item if it is on the web; click Canvas for the items not on the web.
2. Copies of all readings other than from the KOM textbook are also available in Canvas.
3. All readings are required unless marked "Optional to Read," but a few required readings are marked with a tilde, ~. These represent views that are not necessarily justified by economic analysis. They often contain useful factual information, but I disagree with some of their interpretations, and they are here so that you will be aware of a range of views.

0. Introduction to the Course (Class 0: Aug 28)
No readings for today. For all subsequent classes, you should read everything assigned before the class meets.
I've listed the numbers of pages for each reading and for each topic, so plan accordingly.
Today: I will introduce myself and ask each of you to introduce yourselves, so plan to turn on your microphone and camera. Tell the class:
  • Who you are,
  • What you want to be called,
  • What program and year you are in,
  • Where you are from, and
  • Any particular questions or answers you have about international economics.
Following that I will present some background information about the international economy and trade.
      Optional to View:
           Kudlow, "Don't blame Trump' for trade fights" YouTube (2:14)
           Oliver, "Trade" YouTube (21:13)
I. Overview of the International Economy
A.1. The State of Play in International Trade and Trade Policy I: Trade Wars (Class 1: Aug 30) [55 pp + Opt 22 pp] Questions
Bown & Kolb, "Trade War Timeline" | Online (PDF). [27 pp]
Steel & Aluminum:
Williams, "Biden official says protecting US steel a national security issue" | Canvas. [3 pp]
Bounds, "EU rejects US offer to end steel tariff dispute" | Canvas. [3 pp]
      Optional to Read:
            Wall Street Journal Editorial Board, "Call Them the Biden-Trump Tariff s Now" | Canvas. [2 pp]
      Optional to View:
            Trade Talks #159, "How Biden and Europe settled Trump's steel and aluminum tariffs" 11/7/21 | Podcast [22:44 minutes]
            Trade Talks #175, "The dreaded WTO ruling on Trump’s national security tariffs" 1/22/23 | Podcast [54:36 minutes]
China Tariffs:
Economist, "New research counts the costs of the Sino-American trade war" | Canvas. [3 pp]
Manak et al., "The Cost of Trump’s Trade War with China Is Still Adding Up" | Online [7 pp]
Swanson, "The Contentious U.S.-China Relationship, by the Numbers" | Canvas. [2 pp]
      Optional to Read:
            Bown and Wang, "Five years into the trade war, China continues its slow decoupling from US exports" | Online (PDF). [17 pp]
      Optional to View:
            Trade Talks #118, "Ins and Outs of the US-China Phase-One Trade Deal" 1/18/20 | Podcast [44:58 minutes]
            Trade Talks #181, "US-China trade war fallout: This is what decoupling looks like" 3/21/23 | Podcast [45:43 minutes]
Semiconductors:
Mozur and Liu, "With Ban on Micron, China Escalates Microchip Clash With U.S." | Canvas. [2 pp]
Hayashi and McKinnon, "U.S. Looks to Restrict China’s Access to Cloud Computing to Protect Advanced Technology" | Canvas. [4 pp]
Sohn et al., "China’s Export Curb on Chip-Making Metals Prompts Countries to Explore Supply-Chain Diversification" | Canvas. [4 pp]
      Optional to Read:
            Bounds et al., "Dozens of ASML shipments to China face tougher export curbs" | Canvas. [3 pp]
      Optional to View:
            Miller, Chris, "Chip War: The Fight for the World's Most Critical Technology" 2/23/23 | Video [84 minutes]
            Trade Talks #170, "National security, semiconductors, and the US move to cut off China" 11/2/22 | Podcast [59:33 minutes]
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Quiz 0, Due Fri, Sep 1 11:59 PM
Practice Quiz, not for credit
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A.2. The State of Play in International Trade and Trade Policy II: Other (Class 2: Sep 6) [50 pp + Opt 41 pp] Questions
      Optional to Read:
            KOM: [21 pp]
                  Ch. 1, "Introduction"
                  Ch. 2, "World Trade: An Overview"
BREXIT:
Kirkegaard, "The Brexit agreement: An economic guide for the perplexed" | Online. [4 pp]
Economist, "Brexit and Northern Ireland: Explaining what is in the Windsor framework" | Canvas. [2 pp]
Economist, "Buyers’ remorse: As Britons grow more unhappy with Brexit, what happens next?" | Canvas. [3 pp]
      Optional to Read:
            Economist, "The story of a divorce: How Brexit happened" | Canvas. [8 pp]
            Booth, "Brexit is Boris Johnson's singular achievement. How well is it working?" | Canvas. [4 pp]
      Optional to View:
            Trade Talks #154, "Global Britain: How's that going then?" 6/17/21 | Podcast [27:55 minutes]
CHINA TRADE ACTIONS:
Hille and Langley, "China suspends 2,000 food products from Taiwan as Nancy Pelosi visits" | Canvas. [2 pp]
Michaels, "EU Sues China in WTO Over TradeRetaliation on Lithuania" | Canvas. [3 pp]
Economist, "The Dragon Shows Its Claws: China hits back against Western sanctions" | Canvas. [4 pp]
      Optional to Read:
            Economist, "Surviving the dragon: Australia has faced down China’s trade bans and emerged stronger" | Canvas. [7 pp]
RUSSIA SANCTIONS:
Bown, "Russia's war on Ukraine: A sanctions timeline" | Online. [4 pp]
      Optional to Read:
            Funakoshi et al., "Tracking sanctions against Russia" ("Sanctions by Countries" only) | Online. [11 pp]
            Talley et al., "U.S. Plans to Expand Sanctions, Export Controls on Russia" Canvas. [4 pp]
GREEN SUBSIDIES:
Wall Street Journal Editorial Board, "The Green Subsidy War Accelerates" | Canvas. [2 pp]
Economist, "Green protectionism: How the EU should respond to American subsidies" | Canvas. [2 pp]
      Optional to Read:
            Ewing and Eddy, "As U.S. Races Ahead, Europe Frets About Battery Factory Subsidies" | Canvas. [4 pp]
OTHER DISPUTES AND ACTIONS:
Japan-South Korea Trade Dispute:
Davies and Inagaki, "Japan and South Korea resolve trade dispute as leaders hail ‘new era’" | Canvas. [4 pp]
US-Mexico on GM Corn:
Swanson and Qiu, "U.S. to Challenge Mexican Ban on Genetically Modified Corn" | Canvas. [2 pp]
EU-China Green Tech:
Bounds and Hancock, "Brussels to curb imports of Chinese green tech" | Canvas. [3 pp]
EU Carbon Tariff:
Hancock and Dempsey, "Aluminium companies complain about EU carbon border tax loophole" | Canvas. [3 pp]
      Optional to Read:
            Financial Times Editorial Board, "The EU’s pioneering carbon border tax" | Canvas. [3 pp]
Japan-Australia LNG:
Lebrun, "Japan Accuses Australia of Betrayal in Fight Over Natural-Gas Exports" | Canvas. [3 pp]
India laptops:
Roy, "Importing Laptops Into India Will Now Require a Permit" | Canvas. [3 pp]
      Optional to Read:
            Rajaraman, "Laptops and tomatoes: Changes that show how little has changed" | Canvas. [1 pp]
US-EU cheese beef:
Peterson, "The U.S. Has a Beef with Europe -- Over Cheese" | Canvas. [6 pp]
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Quiz 1, Due Fri, Sep 8 11:59 PM
State of Play
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B.Tariffs and Quotas (Classes 3, 4: Sep 11, 13) [29 pp + Opt 16 pp] Questions
KOM: [12 pp]
           "Basic Tariff Analysis"
           "Costs and Benefits of a Tariff"
      12th Ed.: Ch. 9, pp. 216-227
      11th Ed.: Ch. 9, pp. 215-226
      10th Ed. (trade only): Ch. 9, pp. 206-217, 220-224
Deardorff, "Nontariff Barriers and Domestic Regulation", pp. 1-12 | Online (PDF) [12 pp]
Lahart, "The Imperfect Science of How Much Tariffs Will Hurt". | Canvas. [2 pp]
Martin, "US Importers Bore Cost of Trump’s China Goods Tariffs, ITC Says". | Canvas. [3 pp]
      Optional to Read:
            Deardorff, "Analysis of Tariffs and Quotas" | Canvas. [16 pp]
      Optional to View:
            Touillon-Ricci, "A 4,000-year old tale of trade and contraband" (7:54) (Tariffs are not new!)
            Trade Talks #122, "Tariffs, Protests and Wine" 2/23/20 | Podcast [29:58 minutes]
            Trade Talks #130, "So you want to design a tariff schedule..." 5/31/20 | Podcast [33:14 minutes]
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Quiz 2, Due Fri, Sep 15 11:59 PM
Tariff Analysis
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C. Exchange Rates (Class 5: Sep 18) [22 pp + Opt 3] Questions
KOM: [11 pp]
           "Exchange Rates and International Transactions"
           "The Foreign Exchange Market"
      12th Ed. Ch 14, pp. 356-364
      11th Ed. Ch 14, pp. 350-360 Canvas (for those who have an older trade-only text)
Economist, "The Big Mac index: What the Big Mac index says about the dollar and the dong" | Canvas. [4 pp]
Economist, "What comes after Bretton Woods II?" | Canvas. [3 pp]
McDougall, "US dollar to maintain dominance over next decade, say central banks" | Canvas. [4 pp]
      Optional to Read:
            Economist, "Patty-purchasing power: The dollar is now better value, says the Big Mac index" | Canvas. [3 pp]
      Optional to View:
            Trade Talks #95, "Is China a Currency Manipulator?" 8/9/19 | Podcast [22:33 minutes]
            Trade Talks #104, "How to Hit Currency Manipulators and Fight the Strong Dollar" 12/19/19 | Podcast [29:01 minutes]
D. International Transactions and the Trade Balance (Class 6: Sep 20) [50 pp + Opt 14 pp] Questions
KOM: [25 pp]
           Ch 13, "National Income Accounting and the Balance of Payments"
      Canvas (for those who have an older trade-only text)
Berg, "International Transactions" | Online [15 pp]
Swanson, "America’s Trade Deficit Surged in 2022, Nearing $1 Trillion" | Canvas. [3 pp]
Obstfeld, "Targeting specific trade deficits is a game of whack-a-mole" | Canvas. [2 pp]
~Scott, "U.S. trade deficits hit record highs in 2021" | Online [3 pp]
Krugman, "Of Dictators and Trade Surpluses" | Canvas. [2 pp]
      Optional to Read:
            ~Scott & Mokhiber, "Growing China trade deficit cost 3.7 million American jobs" pp. 1-9 only | Online (PDF) [9 pp]
            ~Buffett, "America's Growing Trade Deficit Is Selling the Nation Out From Under Us" | Online (PDF) [5 pp]
      Optional to View:
            Trade Talks #98, "What's Wrong with Germany's Trade Surplus" 8/28/19 | Podcast [31:46 minutes]
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Quiz 3, Due Fri, Sep 22 11:59 PM
Exchange Rates and BOP
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E. Policies and Institutions: International (Classes 7, 8: Sep 25-27) [64 pp + Opt 43 pp] Questions
KOM: [10 pp]
         "International Negotiations and Trade Policy"
         "BOX: Settling a Dispute -- And Creating One"
         "CASE STUDY: Testing the WTO's Metal"
     12th Ed.: Ch. 10, pp. 264-272
     11th Ed.: Ch. 10, pp. 260-269
     10th Ed. (trade only): Ch. 10, pp. 252-262
Jackson, Ch. 1 pp. 1-11 Canvas. [11 pp]
Jackson, Ch. 2 pp. 49-58 Canvas. [10 pp]
Rodrik, "What Do Trade Agreements Really Do?" | Canvas. [18 pp]
Geneva Trade Platform, "Multi-Party Interim Appeal Arbitration Arrangement (MPIA)" (not "cases" and "news")| Online. [4 pp]
Alden, "Free Trade is Dead. Risky 'Managed Trade' Is Here" | Canvas. [5 pp]
Beattie, "The WTO's marathon exercise in staying alive" | Canvas. [3 pp]
White et al., "China hits back at US chip sanctions with WTO dispute" | Canvas. [3 pp]
      Optional to Read:
            Jackson, Ch. 2 pp. 31-49, 58-78 Canvas. [31 pp]
            Schlesinger, "How China Swallowed the WTO" | Canvas. [12 pp]
      Optional to View:
            Trade Talks #60, "America May Be Doing Away with WTO Dispute Settlement" 10/28/18 | Podcast [31:50 minutes]
            Trade Talks #180, "The WTO is in trouble. Econ 101 to the rescue?" 3/212/23 | Podcast [1:10:41 minutes]
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Quiz 4, Due Fri, Seo 29 11:59 PM
International Institutions
***********************************
F. Policies and Institutions: National, United States (Class 9: Oct 2) [43 pp + Opt 11 pp] Questions
Jackson, Ch. 3, pp. 79-100 Canvas. [21 pp]
Verrill, "An Introduction To Trade Remedies Available Under U.S. Law" | Canvas. [3 pp]
USTR, "FACT SHEET: USTR Releases 2023 Trade Policy Agenda and 2022 Annual Report" | Canvas. [2 pp]
Swanson, "Biden’s Reluctant Approach to Free Trade Draws Backlash" | Canvas. [5 pp]
Boot, "Biden is making the same mistake as Trump on China" | Canvas. [3 pp]
Foroohar, "America is telling a very different story about trade" | Canvas. [3 pp]
Economist, "Trade mission: Taking stock of America’s flagship trade programme for Africa," | Canvas. [4 p]
Fefer et al., "Section 232 Investigations: Overview and Issues for Congress," | Canvas. [2 p]
      Optional to Read:
            Zumbrun, "The $67 Billion Tariff Dodge That's Undermining U.S. Trade Policy" | Canvas. [6 pp]
            Rampell, "What women’s underwear tells us about our trade system" | Canvas. [5 pp]
G. Policies and Institutions: National, Other (Class 10: Oct 4) [41 pp] Questions
European Union:
Jackson, Ch. 3, pp. 100-104 Canvas. [5 pp]
EC, "The European Union in Brief" | Canvas [5 pp]
EC - Trade, "Making Trade Policy" | Online [2 pp]
Matthijs and Parsons, "Single-Market Power: How Europe Surpassed America in the Quest for Economic Integration." | Canvas. [6 pp]
Economist, "The Trade War Within" | Canvas. [3 pp]
Bounds, "EU seeks protected status for goods such as Donegal tweed and Limoges porcelain" | Canvas. [2 pp]
      Optional to View:
            Trade Talks #148, "The EU's new trade policy, with Sabine Weyand of DG Trade" 1/17/21 | Podcast [41:31 minutes]
Japan:
Jackson, Ch. 3, pp. 104-105 Canvas. [1 p]
METI, "Trade Control" | Online [1 p]
WTO, "Trade Policy Review: Japan" | Online-PDF [5 pp]
China:
MOFCOM, "Mission" of the Ministry of Commerce, People's Republic of China | Online. [4 pp]
WTO, "Trade Policy Review: China" | Online-PDF [6 pp]
Wei, "China Spends Far More Than Others to Help Favored Industries, Report Finds" | Canvas. [4 pp]
 

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Paper 1, Due Wednesday, Oct 4 8:30 AM

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Quiz 5, Due Fri, Oct 6 11:59 PM
National Institutions
***********************************
II.Trade Barriers
A.Non-tariff Barriers (Class 11: Oct 9) [46 pp] Questions
KOM: [10 pp]
         "Import Quotas: Theory"
         "Voluntary Export Restraints"
         "Local Content Requirements"
         "Other Trade Policy Instruments"
     12th Ed.: Ch. 9, pp. 233-241
     11th Ed.: Ch. 9, pp. 229-238
     10th Ed. (trade only): Ch. 9, pp. 217-220, 224-227, 232-235
Jackson, Ch. 5, pp. 153-156 Canvas. [3 pp]
Deardorff, "Nontariff Barriers and Domestic Regulation", pp. 12-16 | Canvas. [5 pp]
Feenstra, "How Costly Is Protectionism?" | Canvas. [20 pp]
Beattie, "Mind your TRQs: a Brexit lesson in global trade" | Canvas. [4 pp]
Economist, "Buying local is more expensive than it looks" | Canvas. [4 pp]
      Optional to View:
            Trade Talks #49, "Are Trump's Steel Quotas Worse than His Steel Tariffs?" 8/1/18 | Podcast [20:26 minutes]
B.Export Policies (Class 12: Oct 11) [37 pp + Opt 22 pp for Intermission] Questions
Laborde et al., "A Global Assessment of the Economic Effects of Export Taxes" | Canvas. [17 pp after omissions]
Beckman et al., "The impacts of export taxes on agricultural trade" | Online [4 pp]
Economist, "Full metal jacket: Indonesia embraces resource nationalism" | Canvas. [2 pp]
Reed and Singh, "India restricts rice exports as commodity prices surge" | Canvas. [2 pp]
Fildes, "Australia rattles industry and trading partners with energy interventions" | Canvas. [3 pp]
Khan, "Increasing Export Restrictions on Critical Minerals Threaten Energy Transition, OECD Says" | Canvas. [3 pp]
Godek, "Why China’s Export Controls on Germanium and Gallium May Not Be Effective" | Online [6 pp]
      Optional to View:
            Trade Talks #146, "Semiconductors and US export bans -- from Huawei to SMIC" 12/20/20 | Podcast [32:35 minutes]
***********************************
Quiz 6, Due Fri, Oct 13 11:59 PM
NTBs and Export Taxes
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FALL STUDY BREAK, Oct 16-17

*** INTERMISSION, Monday Oct 16 ***
We will not hold a formal class, due to Fall Study Break, and there are no required assignments.
But I will be available during class time for discussion with those who may want to attend with questions or comments. The optional readings below may be of interest to some. Questions
      Optional to Read: Questions
            Scott, "It's time to end the male monopoly in international trade" | Canvas. [5 pp]
            Economist, "Making trade greener: When environmental protection turns into trade protection " | Canvas. [6 pp]
            Telling, "China urges developing countries to oppose ‘unrealistic’ shipping levy" | Canvas. [3 pp]
            Economist, "The urge to protect: How trade restrictions are being used as a tool to protect human rights" | Canvas. [6 pp]
            Swanson, "Foreign Trade Competition Has Hurt Black and Disadvantaged Workers Most, Report Says" | Canvas. [2 pp]
      Optional to View:
            Trade Talks #124, "Is Trade Bad for Women?" 3/5/20 | Podcast [21:07 minutes]
C.Multi-Market Analysis (Class 13: Oct 18) [13 pp] Questions
Deardorff, "Trade Policy with Interacting Markets" | Canvas. [13 pp]
D.Why Countries Restrict Trade (Class 14: Oct 23) [48 pp + Opt 19 pp] Questions
KOM: [14 pp]
         "The Case for Free Trade"
         "National Welfare Arguments against Free Trade"
         "Income Distribution and Trade Policy"
         "BOX: Politicians for Sale: Evidence from the 1990s"
     12th Ed.: Ch. 10, pp. 251-262
     11th Ed.: Ch. 10, pp. 246-259
     10th Ed. (trade only): Ch. 10, pp. 236-252
Baldwin and Magee, "Is Trade Policy for Sale?" | Online-Springer (PDF) [22 pp]
Magee, "Why Are Trade Barriers So Low?" | Online-Wiley [6 pp]
Krugman, "Wonking Out: Two Cheers for Carbon Tariffs" | Canvas. [3 pp]
Ponnuru, "The politics of trade favor Trump in 2024" | Canvas. [3 pp]
      Optional to Read:
            Deardorff and Stern, "Introduction" | Canvas. [19 pp]
      Optional to View:
            Davidson, "U.S. Tariffs On Shoes" | Online [4 minutes]
            Trade Talks #121, "Can Infant Industry Protection Work? Evidence from Napoleon" 2/12/20 | Podcast [24:09 minutes]
            Trade Talks #156, "Tackling climate change with a carbon border adjustment mechanism" 7/25/21 | Podcast [43:45 minutes]
 

III. The Theory of International Specialization and Exchange
A. The Standard Trade Model (Classes 15, 16: Oct 25, Oct 30) [26 pp] Questions
KOM: [22 pp]
         "The Standard Trade Model"
     Ch. 6 (any edition)
Bernhofen & Brown, "Evidence from nineteenth century Japan" | Online [4 pp]
***********************************
Quiz 7, Due Fri, Oct 27 11:59 PM
Multi-Market and Why Restrict
***********************************
B. Behind the Standard Trade Model: Comp. Adv., Inc. Dist. (Class 17: Nov 1) [51 pp] Questions
KOM, on comparative advantage: [15 pp]
         "The Concept of Comparative Advantage"
         "A One-Factor Economy"
         "Trade in a One-Factor World"
         "BOX: The Case of Babe Ruth"
         "BOX: The Losses from Nontrade"
         "Misconceptions about Comparative Advantage"
         "BOX: Do Wages Reflect Productiity?
     12th Ed.: Ch. 3, pp. 25-40
     11th Ed.: Ch. 3, pp. 24-40
     10th Ed. (trade only): Ch. 3, pp. 24-40
KOM, on effects of trade: [10 pp]
         "Effects of International Trade between Two-Factor Economies"
         "CASE STUDY: North-South Trade and Income Inequality"
         "Factor-Price Equalization"
     12th Ed.: Ch. 5, pp. 97-102, 107-108
     11th Ed.: Ch. 5, pp. 97-102, 107-108
     10th Ed. (trade only): Ch. 5, pp. 94-98, 102-103
Deardorff, "Intro to Comparative Advantage" | Online (PDF) [7 pp]
Freeman, "Are Your Wages Set in Beijing?" | Online-JSTOR (PDF) [19 pp]
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Quiz 8, Due Fri, Nov 3 11:59 PM
Standard Model
***********************************
C. Scale Economies and Imperfect Competition (Class 18: Nov 6) [25 pp] Questions
KOM: [25 pp]
         "External Economies of Scale and the International Location of Production"
             (Except "Interregional Trade and Economic Geography")
         "The Theory of Imperfect Competition"
         "Monopolistic Competition and Trade"
     12th Ed.: Ch. 7, pp. 151-164; Ch. 8, pp. 170-180
     11th Ed.: Ch. 7, pp. 151-164; Ch. 8, pp. 170-180
     10th Ed. (trade only): Ch. 7, pp. 145-156; Ch. 8, pp. 164-174

 

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Paper 2, Due Wednesday, Nov 8 8:30 AM

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IV. Uses and Abuses of Trade Policy
A.Preferential Trading Arrangements (Class 19: Nov 8) [49 pp + Opt 12] Questions
KOM: [7 pp]
         "The End of Trade Agreements?"
         "BOX: Do Agricultural Subsidies Hurt the Third World?"
         "Preferential Trading Agreements"
         "BOX: Free Trade Area Versus Customs Union"
         "BOX: Brexit"
         "CASE STUDY: Trade Diversion in South America"
         "The Trans-Pacific Partnership"
     12th Ed.: Ch. 10, pp. 273-280
     11th Ed.: Ch. 10, pp. 269-276
     10th Ed. (trade only): Ch. 7, pp. 263-268
WTO, "Causes and Effects of PTAs" pp 94-109 | Online (PDF) [16 pp]
Posen, "The Errors of Conservatives Obscure the Case for Trade" | Canvas. [2 pp]
Deardorff and Sharma, "The Simple Analytics of Trade Creation and Diversion" | Online (PDF) [21 pp]
Russ, "Yes, US trade agreements led to economic gains, especially in services, new report says" | Canvas. [3 pp]
      Optional to Read:
            WTO, "Causes and Effects of PTAs" pp 109-120 | Online (PDF) [12 pp]
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Quiz 9, Due Fri, Nov 10 11:59 PM
Behind and Beyond the Standard Model
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B.FTAs and Other Trade Deals (Class 20: Nov 13) [44 pp + Opt 3 pp] Questions
Multicountry:
Kirby, "USMCA, Trump's New NAFTA Deal, Explained in 600 Words" | Online [2 pp]
Hayashi, "U.S. on Sidelines as China and Other Asia-Pacific Nations Launch Trade Pact" | Canvas. [3 pp]
Edmond, "The United Kingdom is set to join the Trans-Pacific free trade pact. Here's what you need to know" | Online [4 pp]
EU and other:
Bounds, "EU seals Chile trade deal that will improve bloc’s access to key minerals" | Canvas. [3 pp]
Bounds and Johnston, "Lula holds up EU trade deal in bid to protect Brazil’s domestic industry" | Canvas. [3 pp]
Johnston and Bounds, "Australia-EU trade deal stalls over meat quotas" | Canvas. [3 pp]
      Optional to Read:
            Bounds and Schipani, "EU agrees trade deal with Kenya as Brussels aims to boost Africa ties" | Canvas. [3 pp]
UK and other:
Alim, "UK government threatened with legal action over Australia trade deal" | Canvas. [3 pp]
Reed et al., "UK trade talks ‘moving very well’, says Indian minister" | Canvas. [3 pp]
Fedor and Politi, "US calls for revived UK trade talks after Northern Ireland deal’, says Indian minister" | Canvas. [5 pp]
US and other:
Economist, "The great steeplechase: America is losing ground in Asian trade" | Canvas. [2 pp]
Beattie, "The US trade pledge to the Indo-Pacific is empty" | Canvas. [3 pp]
Areddy, "U.S., Taiwan Reach Trade Deal as Tensions With China Simmer" | Canvas. [3 pp]
      Optional to View:
            Trade Talks #166, "Biden’s new Indo-Pacific talks vs. TPP" 11/2/22 | Podcast [44:52 minutes]
Other:
Daniels and Leahy, "China deepens ties in Latin America with Ecuador free trade agreement" | Canvas. [4 pp]
Kerr, "UAE and Ukraine open trade talks" | Canvas. [3 pp]
C.Safeguards (Class 21: Nov 15) [42 pp] Questions
Jackson, Ch. 7 Canvas. [37 pp]
USITC, "Understanding Safeguard Investigations" undated | Online [2 pp]
Pikard and Pfeifer, "UK to extend steel import quotas and tariffs for two years" | Canvas. [3 pp]
      Optional to View:
            Trade Talks #20, "Tariff Time! Washing Machines and Dirty Trade Policy" 1/26/18 | Podcast [21:31 minutes]
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Quiz 10, Due Fri, Nov 17 11:59 PM
PTAs & FTAs
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D.Trade Adjustment Assistance (Class 22: Nov 20) [42 pp] Questions
Brainard et al., "Insuring America's Workers" | Online (PDF) [8 pp]
Rosen, "Strengthening Trade Adjustment Assistance" | Online [10 pp]
Lawrence, "A Numbers Argument for Renewing " | Canvas. [2 pp]
Beattie, "The flaws in trying to compensate globalisation's losers" | Canvas. [3 pp]
~James, "Maladjusted: The Misguided Policy of Trade Adjustment Assistance'" | Online [13 pp]
Collins, "Trade Adjustment Assistance for Workers: Background and Current Status" | Canvas. [6 pp]
      Optional to View:
            Trade Talks #91, "Can Trade Adjustment Assistance Work?" 7/4/19 | Podcast [19:04 minutes]

THANKSGIVING BREAK, NOV 22-24

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Quiz 11, Due Fri, Nov 24 11:59 PM
Safeguards & TAA
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E.Dumping and Anti-Dumping Policy (Classes 23: Nov 27) [57 pp] Questions
Jackson, Ch. 10 Canvas. [33 pp]
Deardorff, "Economic Perspectives on Anti-Dumping Law" | Online (PDF) [15 pp]
~Jakob, "Lesser Duty Rule and Community Interest in Anti-dumping" | Online-Springer (PDF) [5 pp]
EC DG-Trade, "Anti-dumping measures" | Online [2 pp]
Hayashi, "U.S. Downgrades Russia to Nonmarket Economy" | Canvas. [2 pp]
      Optional to View:
            Trade Talks #80, "Zeroing: The Biggest WTO Threat You've Never Heard Of" 4/9/19 | Podcast [22:14 minutes]
F.Economic Sanctions (Class 24: Nov 29) [43 pp + Opt 6] Questions
Haass, "Economic Sanctions: Too Much of a Bad Thing" | Online. [10 pp]
Masters, "What Are Economic Sanctions?" | Online [12 pp]
Mulder, "The Sanctions Weapon" | Canvas. [4 pp]
Alderman, "Leave Russia? A Year Later Many Companies Can’t, or Won’t." | Canvas. [4 pp]
Rodriguez, "The harm that sanctions do to the vulnerable" | Canvas. [3 pp]
Washington Post Editorial Board, "How to make the sanctions on Russia really hurt" | Canvas. [3 pp]
Kantchev et al., "How Sanctioned Western Goods Are Still Flowing Into Russia" | Canvas. [7 pp]
      Optional to Read:
            Elliott, "Evidence on the Costs and Benefits of Economic Sanctions" | Online. [6 pp]
      Optional to View:
            Trade Talks #178, "Why sanctions to stop Russian gas pipelines backfired" 2/19/23 | Podcast [53:11 minutes]
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Quiz 12, Due Fri, Dec 1 11:59 PM
Dumping & Sanctions
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G.Subsidies and Countervailing Duties (Class 25: Dec 4) [55 pp + Opt 5 pp] Questions
KOM: [11 pp]
         "Export Subsidies"
         "Sophisticated Arguments for Activist Trade Policy"
         "BOX: A Warning from Intel's Founder"
         "CASE STUDY: When the Chips Were Up"
     12th Ed.: Ch. 9, pp. 232-233, Ch. 12 pp. 302-310
     11th Ed.: Ch. 9, pp. 226-229, Ch. 12 pp. 298-306
     10th Ed. (trade only): Ch. 9, pp. 217-218, Ch. 12 pp. 293-296
Jackson, Ch. 11 Canvas. [25 pp]
Hollinger, "The Airbus and Boeing subsidy battle is far from over" | Canvas. [3 pp]
Stearns, "EU Challenges China's Trade Expansion With Landmark Tariff" | Canvas. [3 pp]
Chazan et al., "A global subsidy war? Keeping up with the Americans" | Canvas. [13 pp]
      Optional to Read:
            Baschuk, "US Treasury Rolls Out Guidelines for Electric Car Subsidies" | Canvas. [3 pp]
            Evenett and Hufbauer, "Are the IRA climate-related tax credits a trillion-dollar problem?" | Canvas. [2 pp]
      Optional to View:
            Trade Talks #116, "Fish Subsidies. What’s the Catch?" 12/19/19 | Podcast [28:27 minutes]
            Trade Talks #184, "The US-EU fights over electric vehicles and the Inflation Reduction Act" 5/7/23 | Podcast [46:28 minutes]
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Paper 3, Due Wednesday, Dec 6 8:30 AM

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*** LAST CLASS, Wednesday Dec 6 ***
We will hold class, as usual, but with no assignments.
Class will be review and Q&A.
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Quiz 13, Due Fri, Dec 8 11:59 PM
Subsidies
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