The course provides students with a theoretical background on international trade, including classical, neoclassical, and "new" trade theories. The theories will help students to understand complex economic phenomena and explain trade patterns between countries. The course emphasizes understanding the institutional environment of international trade as well as the benefits and challenges of regional integration and bilateral trade agreements. Also, the course discusses how domestic firms in Vietnam and other small economies can improve their international competitiveness and benefit from international trade.The course will consist of two parts. Part 1, International Trade Theories, discusses the main concepts and approaches in international trade with real-life applications: the comparative model of David Ricardo and Eli Heckscher, Bertil Ohlin, and new trade model with increasing returns to scale. Part 2, International Trade Policy, presents motives for regional integration and bilateral trade agreement; trade intermediaries; factor mobility and effects of foreign direct investment; and international competitiveness of domestic firms.
