310203 International Trade (Außenwirtschaft) (V) (WiSe 2026/2027)

This course provides an overview of the main theories and empirical topics in international trade. It begins with an introduction to the gravity model of trade, motivated by empirical evidence, and the classical theories of comparative advantage, including the Ricardian, Specific-factors, and Heckscher–Ohlin models. These models are complemented by empirical applications, illustrating how they can be used to analyze issues such as the effects of international trade on wage inequality.

The course then discusses modern trade theories, such as increasing returns to scale and firm heterogeneity. The final part of the course focuses on contemporary topics in international trade, including global value chains, trade policy (including a discussion of recent U.S. tariff policies), and the interaction between international trade and exchange rates, with particular attention to exchange rate shocks. The concluding lecture introduces the economics of the current account and intertemporal trade.

Throughout the course, theoretical models are complemented by empirical evidence and discussions of their relevance for understanding real-world trade patterns and policy debates.

Bibliography

The lectures are designed to be self-contained. However, the following textbook provides a useful reference:
Krugman, P., Melitz, M., & Obstfeld, M. (2019). International Economics: Theory and Policy (11th ed.). Addison-Wesley. Chapters 1–12.