Simon Fraser University
Engaging the World

Course Outlines

Summer 2026 - ECON 342 D100

International Trade (3)

Class Number: 2070

Delivery Method: In Person

Overview

  • Course Times + Location:

    May 11 – Aug 10, 2026: Tue, 2:30–4:20 p.m.
    Burnaby

  • Prerequisites:

    ECON 103 with a minimum grade of C- or ECON 113 with a minimum grade of B-; ECON 105 with a minimum grade of C- or ECON 115 with a minimum grade of B-; 45 units or permission of the department.

Description

CALENDAR DESCRIPTION:

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.

COURSE DETAILS:

Description

This course introduces theoretical models of international trade and uses these models to explain the main reasons why countries engage in international trade, sign free trade agreements or engage in protectionist policies. Recent real-world proposals for tariffs and other trade policies are modeled theoretically to assess who are the likely winners and losers. The goal is to develop intuition for the underlying drivers of trade and an ability to assess the winners and losers of trade policy using economic models. A graphical approach to understanding theory is emphasized.

Course Learning Outcomes

Students build on their ability to analyze and interpret economic models, and critically assess economic arguments, assumptions, and evidence. Students learn to use written and graphical methods to communicate economic insights. Students learn to use economic concepts to understand real-world human activity and public policy. Students learn to describe and analyze important economic institutions, events, and results.

Topics

Introduction to International Trade and Economic Welfare
Writing Opinions on Trade Policy
Gravity Model
Pure Exchange Model
Comparative Advantage
Ricardian Model
Specialization and Trade
Specific Factor Model
Economies of Scale
Monopolistic Competition
Measuring Welfare Changes (Winners and Losers of Trade Policy)
Trade Policy and Protectionism
Political Economy of Trade

Grading

  • Quizzes and Games 20%
  • Written Assignments 15%
  • Midterm Exam 25%
  • Final Exam 40%

NOTES:

  • We play five economics games during lecture for grade points, and only your top four scores are counted toward your grade. We conduct five quizzes, and only your top four quizzes are counted toward your grade. Games and quizzes will be conducted using Moblab software and require students to sign up for ~$25USD for the semester.
  • There are two written opinions on trade policy worth 7.5% each. A first draft worth 2.5% is due two weeks before the final draft worth 5%, writing feedback is provided on each.
  • The exams are both closed book. The initial midterm is worth 20%, and there is a subsequent opportunity to revise your midterm worth 5%. There is no opportunity to revise the final exam.

Materials

REQUIRED READING:

Krugman, Obstfeld, and Melitz (2022). International Economics: Theory and Policy, 12th edition. Pearson Publishing.

Suranovic (2010) International Trade: Theory and Policy. Available for free at https://saylordotorg.github.io/text_international-trade-theory-and-policy/

REQUIRED READING NOTES:

Your personalized Course Material list, including digital and physical textbooks, are available through the SFU Bookstore website by simply entering your Computing ID at: shop.sfu.ca/course-materials/my-personalized-course-materials.

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.

Final exam schedules will be released during the second month of classes. If your course has a final exam, please ensure that you are available during the entire final exam period 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.

***NO TUTORIALS DURING THE FIRST WEEK OF CLASSES***

Registrar Notes:

ACADEMIC INTEGRITY: YOUR WORK, YOUR SUCCESS

At SFU, you are expected to act honestly and responsibly in all your academic work. Cheating, plagiarism, or any other form of academic dishonesty harms your own learning, undermines the efforts of your classmates who pursue their studies honestly, and goes against the core values of the university.

To learn more about the academic disciplinary process and relevant academic supports, visit: 


RELIGIOUS ACCOMMODATION

Students with a faith background who may need accommodations during the term are encouraged to assess their needs as soon as possible and review the Multifaith religious accommodations website. The page outlines ways they begin working toward an accommodation and ensure solutions can be reached in a timely fashion.