Fall 2020 - ECON 342 D100

International Trade (3)

Class Number: 2225

Delivery Method: In Person


  • Course Times + Location:

    Th 10:30 AM – 12:20 PM

  • Exam Times + Location:

    Dec 12, 2020
    3:30 PM – 6:30 PM

  • Prerequisites:

    ECON 103 or 200 and 105 or 205; 60 units or permission of the department.



Topics discussed in this course are: gains from trade in a classical world; the modern theory of international trade; factor price equalization; empirical tests and extensions of the pure theory model; economic growth and international trade; the nature and effects of protection; motives and welfare effects of factor movements; multinational enterprises; the brain drain; customs union theory; pollution control and international trade. Students with credit for ECON 442 cannot take this course for further credit. Quantitative.


Description: This course develops approaches to international trade including theories based on technology, factor endowments, and scale economies.  It will also look at trade policy and the political economy that leads to the development and use of instruments such as tariffs and quotas and other forms of regulation.  Trade issues in the context of economic development will be the focus in the latter part of the course.

Week 1: Chapters 1 and 2 and start on Chapter 3 – An Overview of World Trade and Comparative Advantage
Week 2:  Chapter 3 – Technology Based Trade: The Ricardian Model
Week 3: midterm 1
Week 4: Chapter 4 – Income Distribution: The Specific Factors Model
Week 5: Chapter 5 – Factor Resource Based Trade: The Heckscher-Ohlin Model
Week 6: Chapter 6 - The Standard Model and Factor Mobility
Week 7: Finishing up chapters 4/5/6
Week 8: midterm 2
Week 9 and 10: Chapter 9 - The Instruments of Trade Policy and Chapter 10 - Political Economy of Trade Policy
Week 11: Chapter 11 - Trade Policy in Developing Countries
Week 12: midterm 3
Week 13: Chapter 11 and 12 - Trade Policy Controversies and Current Directions

Delivery: In this time of Covid-19 lectures will be delivered at the scheduled hours.  Tutorials will also be delivered at the assigned hours.


  • 3 midterms (20% each) 60%
  • Final exam 20%
  • Tutorial attendance and assignments 20%



The textbook for this course is a custom Pearson version of Krugman, Obstfeld and Melitz, International Trade, (2017).

Ebook subscription without MyEconLab ISBN: 978-0134520896

(please note MyEconLab will NOT be required to complete coursework)

Department Undergraduate Notes:

Please note that, as per Policy T20.01, the course requirements (and grading scheme) outlined here are subject to change up until the end of the first week of classes.

Starting Fall 2020, final exam schedules will be released in October. This will allow students to avoid enrollment conflicts, and will significantly reduce instances of exam hardship. If your course has a final exam, please ensure that you are available during the final exam period December 9 - 20 until you receive confirmation of your exam dates. 

Students requiring accommodations as a result of a disability must contact the Centre for Accessible Learning (CAL) at 778-782-3112 or caladmin@sfu.ca.


Registrar Notes:


SFU’s Academic Integrity web site http://www.sfu.ca/students/academicintegrity.html is filled with information on what is meant by academic dishonesty, where you can find resources to help with your studies and the consequences of cheating.  Check out the site for more information and videos that help explain the issues in plain English.

Each student is responsible for his or her conduct as it affects the University community.  Academic dishonesty, in whatever form, is ultimately destructive of the values of the University. Furthermore, it is unfair and discouraging to the majority of students who pursue their studies honestly. Scholarly integrity is required of all members of the University. http://www.sfu.ca/policies/gazette/student/s10-01.html


Teaching at SFU in fall 2020 will be conducted primarily through remote methods. There will be in-person course components in a few exceptional cases where this is fundamental to the educational goals of the course. Such course components will be clearly identified at registration, as will course components that will be “live” (synchronous) vs. at your own pace (asynchronous). Enrollment acknowledges that remote study may entail different modes of learning, interaction with your instructor, and ways of getting feedback on your work than may be the case for in-person classes. To ensure you can access all course materials, we recommend you have access to a computer with a microphone and camera, and the internet. In some cases your instructor may use Zoom or other means requiring a camera and microphone to invigilate exams. If proctoring software will be used, this will be confirmed in the first week of class.

Students with hidden or visible disabilities who believe they may need class or exam accommodations, including in the current context of remote learning, are encouraged to register with the SFU Centre for Accessible Learning (caladmin@sfu.ca or 778-782-3112).