Spring 2020 - ECON 342 D100

International Trade (3)

Class Number: 1675

Delivery Method: In Person


  • Course Times + Location:

    Fr 2:30 PM – 4:20 PM
    SWH 10041, Burnaby

  • Exam Times + Location:

    Apr 20, 2020
    12:00 PM – 3:00 PM
    AQ 3181, Burnaby

  • 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.


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 and 4: Chapter 4 – Income Distribution: The Specific Factors Model
Week 4 and 5: Chapter 5 – Factor Resource Based Trade: The Heckscher-Ohlin Model
Week 6: Chapter 6 - The Standard Model and Factor Mobility
Week 7: Midterm
Week 8 and 9: Chapter 9 - The Instruments of Trade Policy
Week 9 and 10: Chapter 10 - Political Economy of Trade Policy
Week 11: Chapter 11 - Trade Policy in Developing Countries
Week 12: Chapter 12 - Trade Policy Controversies
Week 13: Chapters 7 and 8 - Economies of Scale and Firms in the Global Economy


  • Tutorial 25%
  • Midterm 25%
  • Final exam 50%



The textbook for this course is a custom Pearson version of Krugman, Obstfeld and Melitz, International Trade, (2017). There are two options to purchase: Custom looseleaf with MyEconLab
ISBN: 978-1323804544.
Ebook subscription without MyEconLab
ISBN: 978-0134520896 

Department Undergraduate Notes:


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