SURVEY OF INTERNATIONAL ECONOMICS COURSE

MODULE 4:
TRADE, TARIFFS, AND RETALIATION

Textbook Reading:

Trade Policy Effects with Perfectly Competitive Markets

(A 2016 version of the textbook reading is available at FlatWorld Knowledge.)

Presentation Slides:

Trade and Tariffs PPT

Recent Events/Analysis:

Trump’s China tariffs: Lessons from first principles of classic trade policy welfare analysis
(Sept 2019) Traditional analysis of tariffs in a partial equilibrium setting can tell us much about the welfare consequences of the US-China trade war. The column argues that, as tariffs ratchet up, welfare costs for both sides increase disproportionately.

Current Foreign Retaliatory Actions Against the US
(Jan 2020) This USITC webpage highlights foreign country retaliations to US tariff increases under Sections 232 and 301 of US trade law.

OVERVIEW

This module will demonstrate the price and welfare effects of trade and tariffs in large and small country cases. We will also consider simple examples of trade wars and use insights from this to help understand the motivations for the WTO.

VIDEO LECTURE

This lecture was recorded in Fall 2016. It is 128 minutes long.

ANSWER KEY

Click HERE for answers to the textbook questions.