International Trade and the Firm (Part 1)

INTRODUCTION

Summary: Today we will continue our study of trade restrictions.

Inquiry Question: Why do countries use trade restrictions and what is the WTO's role in this issue?

HOMEWORK DUE TODAY

• REQUIRED: Watch, take notes, and do the practice questions for these videos. Be prepared for a formative assessment.

  • Basics of Multinational Corporations (6:20)

  • Gains from Multinationals (3:09)

  • Firm Myths (5:59)

  • Productivity in Firms (3:21)

  • Trade and External Economies of Scale (19:07)

  • Monopolistic Competition and International Trade (16:34)

  • Trade and Increasing Returns Evidence (8:45)

  • International Trade Disciplines Monopolies (4:43)

  • Intra-firm Trade (3:41)

• OPTIONAL: Listen to this podcast on the history of trade or this one on the Smoot-Hawley Tariff and the Great Depression.

ASSESSMENTS AND ACTIVITIES

1. Formative assessment. (20 minutes)

2. Read this article. Do you agree with Krugman? Was he right in 1997?

3. Flipgrid: Debate on MNC's

WORK DUE NEXT CLASS

REQUIRED: Watch, take notes, and do the practice questions for these videos.

• Intra-Industry Trade (13:08)

• Unbundling the Supply Chain (13:33)

• Robert Torrens and Sliding Tariffs (4:36)

• South Korea and Industrial Policy (6:50)

• The Deindustrialization of India (4:45)

• Optional: Friedrich List (6:27)

• Optional: Paul Romer (15:34)

OPTIONAL: Listen to this podcast on the progressive case for trade.