International Business Economics 2018-2019

Instructor: Rodolfo Helg


(KOM) P.Krugman, M.Obstfeld, M.J. Melitz, International Trade: Theory and PolicyPearson International, 2015, 10th edition (also in Italian: Economia Internazionale I, decima ed., Pearson-Bruno Mondadori Paravia, 2015)
(S1)  Suranovic S. "International trade theory and policy analysis", (freely available on the web here , 2012 edition - here  and here in pdf form).

News from : Sole XIV OreThe EconomistFinancial TimesWall Street Journal etc.

 groups and timetable   NEW 2018


For attending students evaluation is based on:
- class presentation (15% of final mark): Students should form 3/4 member groups. Each group should find a nickname. Members should stick to their groups throughout the course. The tasks each group is charged with is to make two class presentations on international economics/business topics found in a newspaper/magazine article. 
- peer evaluation (10% of final mark)
- written exam     (75% of final mark)

Non attending students: please contact the instructor

Old exams:

sample exam
in English: past exams questions
in Italian:
Esercitazione 1Esercitazione 2
Appendice AAppendice B


* = compulsory readings

1. Introduction

* KOM, 1 and 2
* Maddison A., The world economy: a millennial perspective, OECD, 2001 (see page 27)
class presentation
The World Economy, The Economist, 29 September 2016
Tomb I., K. Trivedi, Peak trade is premature, VOXeu, 6 January 2017
Rodrik D., Economics of the populist backlash, VOXeu, 3 July 2017
O'Rourke K., Brexit: this backlash has been a long time coming, VOXeu, 7 August 2016
Hoekman B, Adding value, Finance&Development, December 2013, Vol. 50, No. 4
OECD-WTO, Measuring trade in value added
Subramanian A., M. Kessler, The hyperglobalization of trade and its future, GCF WP3, June 2013.
Ghemawat P. (interview with), Businesses be aware: the world is not flat,  Harvard Business School, Working Knowledge, October 2007.
Ghemawat P. (Talk), "Actually the world isn't flat", June 2012, TED
Friedman T. (video speech),The world is  flat 3.0, MIT World, November 2007
DeBenedictis L., R.Helg, Globalizzazione, Rivista di Politica Economica, marzo-aprile 2002 (par. 2 e 3) (also as LIUC Papers No.112)
Bhagwati J., Elogio della globalizzazione, Laterza, 2005 (riassunto su Rivista di Politica Economica in italiano o in inglese)
Bairoch P. e R.Kozul-Wright, Globalisation myths, in Kozul-Wright e Rowthorn (eds.), Transnational corporations and the global economy, Macmillan, 1998.
Feenstra R.C.,"Integration of trade and disintegration of production in the global economy", Journal of Economic Perspective, 12, 4, Fall 1998 (working paper version)

Data and information on world trade can be obtained from:

WTO, World Trade Report 2018,  2018
UNCTAD, World Investment Report 2018,  2018
UNCTAD, Trade and Development Report 2018,  2018
International trade center UNCTAD-WTO (international trade statistics
Unione Europea, DG-Trade
Studi Economici Istituto per il Commercio Estero (ICE)
US International Trade Commission

2. Causes and consequences of international trade: the principle of comparative advantage
(differences in relative labour productivity).

* KOM, 3  (class presentation)
* S1, "Valuable Lessons of International Trade Theory
(international comparison in labour productvity can be obtained from US Bureau of Labor Statistics)
Trade disputes, Economic Focus, The Economist, September 16th 2004
Ricardo D., On the principles of political economy of taxation, 1817 (London: John Murray, Albemarle-Street), (in chapter 7, paragraph 16, Ricardo introduces the principle of comparative advantages)

3.Causes and consequences of international trade: the principle of comparative advantage
(differences in relative factor endowments).

* KOM, 5   (IX ed. 110-118; 119-134; VII ed. chpt 4, 50-57, 61-77; it ed. 69-78, 82-103) (class presentation
First among unequalsThe Economist, January 15th 1994.
Trade in the balance, The Economist, February 6th 2016
An inconvenient iota of truthThe Economist, August 6th 2016
Acemoglu D., D.Autor, D.Dorn, G.Hanson, B.Price, The rise of China and the future of US Manufacturing, VoxEu 28 September 2014
Epifani P., Il teorema HO, mimeo 1998

4. Trade, growth and the terms of trade

KOM 6 (VII ed. 84-95; it ed.111-125) (class presentation)
Hernandez Z., Industrial policy in East Asia: in search for lessons, Background Paper, World Development Report 2005, September 2004
Bailey M.N., The sources of economic growth in OECD countries: a review articleInternational Productivity Monitor, No 7, Fall 2003
Dollar D., A.Kray, Trade, growth and povertyFinance&Development, September 2001, 38, 3.1
Crafts N., "East Asian growth before and after the crisisIMF Staff Papers, 46, 2, June 1999

5. Causes and consequences of international trade: imperfect competition and economies of scale.

* KOM, 7 (class presentation external economies)
* KOM, 8 185-201 (VII ed. 110-131, 136-144; it ed. 145-172,178-188) (class presentation Krugman model)
Jepma C., H.Jager, Introduction to international economics, Palgrave Macmillan, 2011 (cap.3.4.3 The Porter analysis) 
Salvatore D., Economia Internazionale, vol. 1, Etas, 2002 (pg. 211-217). 
Porter M.P., The competitive advantage of nationsHarvard Business Review paperback No.90079,

6. International mobility of production factors

- Foreign direct investments

* class presentation (class presentation)
* KOM, 8.6  (VII ed. 157-165; it. ed. 181-194).(IX ed chpt 8 210-217)
Melitz M.J., D. Trefler, Gains from trade when firms matter, Journal of Economic Perspectives, 26, 2, Spring 2012
Bernard A.B., J.B. Jensen, S.J.Redding, P.K.Schott, Firms in international tradeJournal of Economic Perspectives, 21, 3, Spring 2007.
Barba-Navaretti G., A.J. Venables, Multinational firms in world economy, Princeton University Press, 2004 (chpt 1
(edizione italiana: Le multinazionali nell'economia mondiale, 2006, Il Mulino)
UNCTAD, World Investment Report 2016, 2016 (Country Fact Sheet: Italy)
OECD, FDI statistics.
OECD, The OECD guidelines for multinational enterprises


Borjas G.J., Immigration, voice for The Coincise Encyclopedia of Economics 
OECD, International migration web site. 
Coppel J., J.C.Dumont, I. Visco, Trends in immigration and economic consequences, OECD WP No. 284, June 2001.
Chiswick B.R., T.J. Hatton, International Migration and the Integration of Labor Markets, in Bordo, Williamson, Taylor, Globalisation in Historical Perspective, Un. of Chicago Press, 2003

7. Trade policy instruments

* KOM, 9 (IX ed chpt 9 pg. 222-232) (class presentation)
OECD, Trade facilitation: the benefits of simpler, more transparent border procedurePolicy Brief, August 2003

8. The debate on free trade

* KOM,  10, 11, 12 (IX ed chpts 10-11-12) (class presentation)
Georgiades G., J. Gräb, Growth, real exchange rates and protectionism since the financial crises, VOXEu, December 2013
Bharadwaj P., L.Lakdawala, N. Li, Perverse consequences of well-intentioned regulation: evidence from India's child labour ban, VoxEU, December 2013
Bailey M.N., R.Z. Lawrence, Don't blame trade for US job losses, The McKinsey Quarterly, 2005 No.1
Irwin D., A Brief History of International Trade Policy, Contributors' Forum, November 2001, The Library of Economics and Liberty
Rodrik D., Has globalization gone too far?, PIIE, 1997.
Krugman P., Making sense of the competitiveness debate, in Oxford Review of Economic Policy, Autumn, 1996.

9. International economic integration I: the multilateral approach

* KOM, 10 (IX ed chpt 10) (class presentation)
WTO, Understanding the WTO, 2015, (9-14, 23-24, 101-111)
Bhagwati J., Dawn of a New System, Finance&Development, December 2013
Hoekman  B., S. Jackson,  Reinvigorating the trade policy agenda: Think Supply Chain, VoxEu  January 2013
Tokarick S., Trade issues in the Doha Round: dispelling some misconceptions, IMF PDP 06/04
Panagariya A., Agricultural liberalization and the least developed countries: six fallacies, World Economy; Global Trade Policy 2005
Helg R., L.Salvatici, L'OMC e la scommessa di Hong Kong, La Voce, dicembre 2005

10. International economic integration II: preferential trade agreements

* KOM, 10 (IX ed chpt 10)
OECD, Regional Trade Agreements web site
Bhagwati J., D.Greenaway, A.Panagariya, "Trading preferentially: theory and policy", The Economic Journal, 108, July, 1998.
Ethier W.J., The new regionalism, The Economic Journal, 108, July, 1998.
Bagwell K., R.W.Staiger, "Will preferential agreements undermine the multilateral trading system ?", The Economic Journal, 108, July, 1998.

11. Trade patterns: Italy and EU

Hassan F., G.I.P. Ottaviano, Productivity in Italy: the great unlearning, VoxEU, November 2013
Borghi E., R. Helg, Il modello di specializzazione italiano per classi d'imprese, cap 8, pg 299-306 in ICE, L'Italia nell'economia internazionale, Rapporto 2010-2011, luglio 2011
R.Helg, La specializzazione anomala dell'economia italiana, La Voce, 4 febbraio 2003
OECD, Economic Survey of Italy, 2015. 
S.Chiarlone, R.Helg, "Il modello di specializzazione internazionale italiano e le economie emergenti dell'Estremo Oriente", versione provvisoria, novembre 2001 (versione definitiva in Progetto 2002: La competitività dell'Italia, volume "Le imprese", a cura di G.P. Galli e L. Paganetto, Il Sole XXIV Ore, 2002). 
Helg R., "Italian districts in the international economy", LIUC Papers No:68, novembre 1999. 
Epifani P., Sulle determinanti del modello di specializzazione internazionale dell'Italia, Politica Economica 1999, agosto, No.2 (anche LIUC Papers No:51).