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Bachelor	TR-NQF-HE: Level 6	QF-EHEA: First Cycle	EQF-LLL: Level 6

Course Introduction and Application Information

Course Code	Course Name	Semester	Theoretical	Practical	Credit	ECTS
IB3413	International Trade Theory	Spring	3	0	3	9

This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester.

Basic information

Language of instruction:	English
Type of course:	Non-Departmental Elective
Course Level:	Bachelor’s Degree (First Cycle)
Mode of Delivery:	Face to face
Course Coordinator :	Assist. Prof. FADİME İREM DOĞAN
Course Lecturer(s):	Assist. Prof. FADİME İREM DOĞAN
Recommended Optional Program Components:	None
Course Objectives:	No economy exists in isolation. Goods, services, people (labor), and capital move from one economy to another. Economic policies implemented by one country can affect the economy and welfare of other countries. The discipline under economics that studies the interaction between economies is called international economics. The subject matter of our course, International Trade Theory (IB 3413), falls under the broader topic of international economics. International trade theory first and foremost tries to explain why trade (movement of goods and services) takes place among different economies and then tries to analyze whether or not a nation benefits from international trade. International trade theory also tries evaluating income distribution consequences of trade. The objective of the course is twofold. The first objective is to introduce the basic concepts and analytical tools used by international trade economics. Secondly, main trends in global trade and globalization is presented in conjunction with the analytical framework developed throughout the course.

Learning Outcomes

The students who have succeeded in this course;
At the end of the course, you will be able to:

1. Learn different theoretical models explaining trade patterns, gains from trade and income distribution effects of trade.
2. Evaluate global trade flows by applying the theoretical models learned in this course.
3. Evaluate various debates concerning free trade vs protectionism/mercantilism.
4. Understand the dynamic nature of comparative advantage and identify the situations when this concept is not applicable.
5. Learn the factors that motivate a firm that invests abroad and consequences of foreign investments.
6. Learn to access and interpret data on international trade flows.

Course Content

1st Week: General introduction: What is ‘international trade’? Trends in world trade in goods and services.
2nd Week: Classical Trade Model: Absolute Advantages and Opportunity Cost.
3rd Week: Classical Trade Model: The Ricardian Model and Comparative Advantage.
4th Week: Classical Trade Model: The Ricardian Model and Comparative Advantage.
5th Week: Neoclassical Trade Model: The corollaries of ‘Heckscher-Ohlin’ model.
6th Week: Neoclassical Trade Model: Factor endowments and ‘Heckscher-Ohlin’ model.
7th Week: Midterm examination
8th Week: Neoclassical Trade Model: Stolper-Samuelson theorem; Rybczynski theorem; Factor-price equalization theorem.
9th Week: Neoclassical Trade Model: Standard Trade Model.
10th Week: New trade theory: Economies of scale and imperfect competition.
11th Week: New trade theory: Economies of scale and imperfect competition.
12th Week: Implications of Trade New trade theory; strategic trade policy and intra-industry trade.
13th Week: Product cycle theory.
14th Week: Overall evaluation.

Weekly Detailed Course Contents

Week	Subject	Related Preparation
1)	Syllabus’ın Tanıtımı ve Açıklaması
2)	Introduction: The subject matter of international economics, mercantilistic view of trade vs. free trade
3)	Trade and Technology: The Ricardian Model andClassical Theories
4)	Classical Trade Model
5)	Gains and Losses from Trade in the Specific Factors Model
6)	Trade and Resources: The Heckscher-Ohlin Model
7)	Movement of Labor and Capital Between Countries
8)	Midterm
9)	Economies of Scale, Imperfect Competition and International Trade
10)	Offshoring of Goods and Services
11)	Trade Restrictions : Tariffs
12)	Nontariff Trade Barriers
13)	Economic Integration
14)	Trade and Development

Sources

Course Notes / Textbooks:	Krugman, P. R., Obstfeld, M., Melitz, M. (2021). International Economics: Theory and Policy, 12th edition, Prentice Hall.
References:	Krugman, P. R., Obstfeld, M., Melitz, M. (2021). International Economics: Theory and Policy, 12th edition, Prentice Hall.

Evaluation System

Semester Requirements	Number of Activities	Level of Contribution
Attendance	14	% 10
Homework Assignments	1	% 10
Midterms	1	% 30
Final	1	% 50
Total		% 100
PERCENTAGE OF SEMESTER WORK		% 50
PERCENTAGE OF FINAL WORK		% 50
Total		% 100

ECTS / Workload Table

Activities	Number of Activities	Workload
Course Hours	14	40
Study Hours Out of Class	16	101
Quizzes	2	2
Midterms	1	2
Final	1	2
Total Workload		147

Contribution of Learning Outcomes to Programme Outcomes

No Effect	1 Lowest	2 Low	3 Average	4 High	5 Highest

	Program Outcomes	Level of Contribution
1)	To be able to apply theoretical concepts related to mass communication, consumer behavior, psychology, persuasion,sociology, marketing, and other related fields to understand how advertising and brand communication works in a free-market economy.	2
2)	To be able to critically discuss and interpret theories, concepts, methods, tools and ideas in the field of advertising.	2
3)	To be able to research, create, design, write, and present an advertising campaign and brand strategies of their own creation and compete for an account as they would at an advertising agency.	2
4)	To be able to analyze primary and secondary research data for a variety of products and services.	2
5)	To be able to develop an understanding of the history of advertising as it relates to the emergence of mass media outlets and the importance of advertising in the marketplace.	2
6)	To be able to follow developments, techniques, methods, as well as research in advertising field; and to be able to communicate with international colleagues in a foreign language. (“European Language Portfolio Global Scale”, Level B1)	2
7)	To be able to take responsibility in an individual capacity or as a team in generating solutions to unexpected problems that arise during implementation process in the Advertising field.	3
8)	To be able to understand how advertising works in a global economy, taking into account cultural, societal, political, and economic differences that exist across countries and cultures.	2
9)	To be able to approach the dynamics of the field with an integrated perspective, with creative and critical thinking, develop original and creative strategies.	2
10)	To be able to to create strategic advertisements for print, broadcast, online and other media, as well as how to integrate a campaign idea across several media categories in a culturally diverse marketplace.	2
11)	To be able to use computer software required by the discipline and to possess advanced-level computing and IT skills. (“European Computer Driving Licence”, Advanced Level)	2
12)	To be able to identify and meet the demands of learning requirements.	2
13)	To be able to develop an understanding and appreciation of the core ethical principles of the advertising profession.	2