This course introduces the theory and policy of international trade, with applications to contemporary global economic issues. It considers why countries trade, what determines patterns of trade, who gains and who loses, how trade affects welfare and income distribution, and how trade policy—including tariffs, trade agreements, and trade disputes—can shape outcomes for firms, workers, consumers, and industries. The course typically also examines firm heterogeneity and export decisions, as well as the vulnerabilities associated with globalisation. Selected open-economy macroeconomic topics will also be covered, including exchange rates and the role of monetary and fiscal policy in an open economy.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1. Demonstrate an understanding of the main economic theories and models of international trade.
2. Apply core international trade models to explain patterns of trade and evaluate the welfare and distributional effects of trade liberalisation.
3. Evaluate trade policy arguments and evidence by assessing underlying assumptions and identifying policy trade-offs.
4. Analyse real-world problems using appropriate international economics tools and relevant institutional context.
5. Demonstrate an understanding of open-economy macroeconomics and the determinants of exchange rates and the balance of payments.

Research-Led Teaching

The lecturer is an active researcher in the areas of Macroeconomics and Labour economics and students will be exposed to current economics research in the field throughout the course.

Examination Material or equipment

The midterm test, the "Applied Policy Response" and the final exam will be closed book and invigilated. A calculator will be needed for the mid-term test and the final exam.

Required Resources

The textbook is required and is available as an e-book through Pearson MyLab.

Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2022). International Economics: Theory and Policy, Global Edition (12th ed.). Pearson Education Limited.

Students are also required to access Pearson MyLab to complete the assigned problem sets.

Additional articles will be posted on Canvas, some of which will be required reading.

Recommended Resources

Additional articles will be posted on Canvas, some of which will be optional reading.

Staff Feedback

Students will be given feedback in the following forms in this course:

• Students will receive regular feedback through the MyLab practice sets and optional exercises, which are designed to help students check their understanding of key concepts and identify areas where further practice is needed. These tasks provide an opportunity to engage with the material throughout the semester and to prepare for the invigilated assessments. 
• Feedback will also be provided through tutorials. Tutorial activities will give students opportunities to ask questions, work through problems, discuss case studies, and apply course concepts to current events. In particular, the current events reflection task will include peer discussion in tutorials, allowing students to receive comments, questions, and alternative perspectives from another student before submitting their written reflection.
• For the current events reflection and applied policy response, students will receive feedback on their ability to connect course concepts to real-world issues, explain economic mechanisms clearly, assess trade-offs, and communicate their reasoning effectively.
• Students will receive feedback on the midterm test after it has been marked. This feedback will help students identify strengths and weaknesses in their understanding of the first part of the course and prepare for the remaining assessments.
• Additional feedback will be provided in lectures and tutorials through discussion of common difficulties, review of key concepts, and guidance on how to approach analytical and discursive questions. Students are also encouraged to seek clarification during tutorials and office hours.
• The Canvas site contains a forum for ongoing discussion and feedback.

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Other Information

Tutorials

All students attend a one-hour tutorial starting in the second week. Only face-to-face (on-campus) tutorials will be available. ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse, then self-allocate to tutorials so they can better plan their time. Find out more on the Timetable webpage: https://www.anu.edu.au/students/program-administration/timetabling.

 

The first tutorial will take place during the second week of class. Tutorial exercises are designed to apply and reinforce the principles taught in lectures. The topic and activities for each tutorial will be posted in the previous week, so students should check Canvas regularly and prepare accordingly.

Tutorials will vary in format across the semester. In some weeks, tutorials will focus on solving analytical problems and practising the use of key models and diagrams. In other weeks, they will involve discussion of case studies or current events that relate to the course material. Tutorials may also be used for review, consolidation, and preparation for the midterm test, the applied policy response, and for the final examination. The assessment "Applied Policy Response" will take place in tutorials in Week 9. The Current Events discussion will take place in Week 10. Attendance will be recorded in these weeks.

Students are strongly encouraged to attend tutorials regularly and to participate actively, as tutorials provide an important opportunity to ask questions, practise economic reasoning, and develop confidence applying international economics to real-world issues.

Technology, Software, Equipment

Students need to check the Canvas course website regularly for updates, announcements, readings, lecture notes, etc.

I will also be using the Pearson MyLab feature of the required textbook. Problem sets and optional exercises will be available to be completed on the MyLab platform.

Workload

Students taking this course are expected to commit at least 10 hours a week to completing the work, averaged across the semester, comprising:

·        2 hours a week of lectures

·        1 hour a week of tutorial

·        7+ hours a week: reading, writing, exercises, problem sets, and tutorial preparation

Some weeks will demand less time than this; some more.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	These summaries are tentative and aspirational only and actual coverage will depend on class progress, which varies from year to year. KOM refers to the textbook by Krugman, Obstfeld and Melitz. Lectures. Introduction to the course. World trade overview & gravity model; Ricardian model introduction. KOM Chapters 1, 2 and 3.	Optional MyLab exercises.
2	Lectures. Ricardian model (cont). KOM Chapter 3. Tutorials.	Optional MyLab exercises.
3	Lectures. Specific Factors and Income Distribution.KOM Chapter 4.Tutorials.	MyLab problem set #1 due.
4	Lectures. Heckscher-Ohlin Model.KOM Chapter 5.Tutorials.	Optional MyLab exercises.
5	Lectures. The Standard Trade Model.KOM Chapter 6.Tutorials.	MyLab problem set #2 due.
6	Lectures. Economies of Scale. International Location of Production.KOM Chapter 7.In class mid-term test (50 mins) - during lecture time.Tutorials.	Optional MyLab exercises.In class mid-term test (50 mins) - during lecture time.
7	Lectures. Economiest of Scale cont. Firms in the Global Economy: Export and Foreign Sourcing Decisions and Multinational Enterprises. KOM Chapters 7 (cont) and 8.Tutorials.	MyLab problem set #3 due.
8	Lectures. Instruments of Trade Policy. Tariffs (costs and benefits). Trade Wars. Subsidies and other instruments.KOM Chapter 9.Tutorials.	Optional MyLab exercises.
9	Lectures. The Political Economy of Trade Policy. KOM Chapter 10.Tutorials.	MyLab problem set #4 due.In-tutorial assessment: "Applied Policy Response," invigilated.
10	Lectures. National Income Accounting and Balance of Payments. Exchange Rates and the Foreign Exchange Market. KOM Chapters 13 and 14. Tutorials.	Optional MyLab exercises.In-tutorial current events reflection discussion. Attendance taken.
11	Lectures. Open-economy macroeconomic topics.KOM Chapter 15, 16, 17 (selected sections TBA)Tutorials.	Optional MyLab exercises.Current events reflection due 22 October 2026.
12	Lectures. Selected Case Studies and Review. Tutorials.	MyLab problem set #5 due.

Tutorial Registration

All students attend a one-hour tutorial starting in the second week. Only face-to-face (on-campus) tutorials will be available. ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse, then self-allocate to tutorials so they can better plan their time. Find out more on the Timetable webpage:  https://www.anu.edu.au/students/program-administration/timetabling.

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
MyLab Practice Sets — 15%	15 %	*	*	1, 2, 3, 5
Midterm Test — 20%	20 %	*	21/09/2026	1, 2, 3, 4
Applied Policy Response — 20%	20 %	*	26/10/2026	1, 3, 4
Current Events Reflections — 15%	15 %	22/10/2026	30/10/2026	1, 2, 3, 4
Final Exam — 30%	30 %	05/11/2026	09/12/2026	1, 2, 3, 4, 5

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Policy and General Information
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website Students may choose not to submit assessment items through Turnitin. In this instance you will be required to submit, alongside the assessment item itself, hard copies of all references included in the assessment item.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Participation

This course will be delivered face-to-face with in-person lectures and tutorials.

Students need to complete regular problem sets in MyLab and attend all lectures and tutorials.

Examination(s)

There is a mid-term test and a final exam for this course (see Assessment Tasks 2 and 5).

Assessment Task 1

MyLab Practice Sets — 15%

There will be five online practice sets to be completed and submitted through Pearson MyLab. Each practice set is worth 3%, for a total of 15% of the final course grade. The practice sets will be due on the Fridays of Weeks 3, 5, 7, 9, and 12. Feedback and results will be released the day after each due date. The MyLab practice sets are designed to help students keep up with the course material, supporting regular engagement throughout the semester. Students are responsible for ensuring that their work is submitted by the relevant deadline and that they can access MyLab well before the due date.

Assessment Task 2

Midterm Test — 20%

The midterm test is worth 20% of the final course grade. It will be held in person during lecture time in Week 6. The test will be invigilated and closed book. Calculators will be permitted, but no other aids will be allowed.

The midterm test will cover material from the first five weeks of the course. It will assess students’ understanding of the main concepts, models, and applications introduced in this part of the course, as well as their ability to interpret and explain economic arguments clearly. The test will include a combination of multiple-choice questions and short-answer questions. More details will be provided by the end of Week 4.

Assessment Task 3

Applied Policy Response — 20%

The applied policy response is worth 20% of the final course grade. It will be completed in person during tutorials in Week 9. The task will be invigilated and closed book.

Students will be given a list of possible policy questions in advance. These questions will relate to major themes in international economics. Students are expected to prepare for all of the listed questions. During the tutorial, each student will be randomly assigned one of the questions and will write an individual response under invigilated conditions.

The response should use concepts, models, and evidence from the course to analyse the policy issue clearly and critically. Students should explain the relevant economic mechanisms, identify important trade-offs, consider who may gain or lose from the policy or event, and, where appropriate, provide a reasoned policy recommendation. The task is designed to assess students’ ability to apply international economics to real-world policy questions and to communicate economic reasoning clearly.

More details, including the list of possible questions and the format of the response, will be provided at least two weeks before the assessment.

Assessment Task 4

Current Events Reflections — 15%

Students will complete one current events reflection during the semester, worth 15%. This is due on 22 October (Week 11) and will be returned on 30 October.

Students will choose a recent news article, policy debate, or current event related to the material studied in the course, but on a topic that has not been directly addressed and answered in the lectures or assigned textbook chapters. A list of suitable articles will be provided by Week 7. Students may choose an article from this list, or they may propose their own article, subject to approval by the lecturer. Students are encouraged to suggest their own article where they have a particular interest in a topic, provided that it is drawn from a reputable news, policy, or research source and is clearly connected to international economics.

Students must bring their chosen article to the tutorial in Week 10 and be prepared to discuss it with another student. In the tutorial, students will work in pairs. Each student will have approximately 15 minutes to present their article, explain how it relates to concepts from the course, and critically assess the arguments or claims made in the article, including whether they agree or disagree with the analysis and whether any important limitations or errors should be noted. Their partner will then have approximately 10 minutes to respond, ask questions, and offer their own thoughts. Students are encouraged to discuss the topic freely and to consider different interpretations of the issue. Tutorial participation in week 10 is required in order to receive marks for this assessment. Attendance will be taken. Students who do not attend and participate in the tutorial discussion will not be eligible to receive marks for the reflection, unless they have an approved reason for absence.

Each student will then prepare and submit an individual written reflection due on 22 October. The reflection should be approximately 700–850 words in length. It should briefly summarise the article, identify the relevant course concepts, explain how those concepts help us understand the issue, and critically assess the arguments made. The reflection should also include a short response to the partner’s comments or questions from the tutorial discussion, explaining whether and how the discussion affected the student’s own thinking. Students will not be penalised if their discussion partner provides limited feedback. In that case, the student should use the reflection to identify the questions, concerns, or alternative interpretations that a critical reader might reasonably raise.

The purpose of this assessment is to help students connect the analytical tools of international economics to real-world events, develop confidence discussing current economic issues, and practice explaining economic ideas clearly in both spoken and written form.

Students who are unable to attend the Week 10 tutorial discussion for an approved reason will be offered an alternative opportunity to complete the discussion component (in person or online) with another student or with a tutor. Where necessary, the deadline for the written reflection may be adjusted to ensure that the student has a reasonable opportunity to incorporate insights from this discussion into their submission.

Assessment Task 5

Final Exam — 30%

The final examination is worth 30% of the final course grade. It will be a two-hour exam held in person during the ANU examination period. The exam will be invigilated and closed book. Calculators will be permitted, but no other aids will be allowed.

The final examination will cover material from the entire course. It will assess students’ understanding of the main concepts, models, and applications in international economics, as well as their ability to interpret and explain economic arguments clearly. The exam may include a combination of multiple-choice questions, short-answer questions, and longer-answer questions. Questions may be discursive, analytical, or a combination of both. More details will be provided in week 10.

Academic Integrity

Academic integrity is a core part of our culture as a community of scholars. At its heart, academic integrity is about behaving ethically. This means that all members of the community commit to honest and responsible scholarly practice and to upholding these values with respect and fairness. The Australian National University commits to embedding the values of academic integrity in our teaching and learning. We ensure that all members of our community understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with. The University has policies and procedures in place to promote academic integrity and manage academic misconduct. Visit the following Academic honesty & plagiarism website for more information about academic integrity and what the ANU considers academic misconduct. The ANU offers a number of services to assist students with their assignments, examinations, and other learning activities. The Academic Skills and Learning Centre offers a number of workshops and seminars that you may find useful for your studies.

Online Submission

The problem sets will be submitted through Pearson MyLab.

Hardcopy Submission

N/A

Late Submission

No submission of assessment tasks after the due date will be permitted. If an assessment task is not submitted by the due date, a mark of 0 will be awarded unless an extension has been granted.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Returning Assignments

Problem sets will be graded in MyLab and students will be able to see their score shortly after the due date.

The Current Events Reflections will be returned by 30 October 2026.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure The Course Convener may grant extensions for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Resubmission of Assignments

N/A

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information. In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service — including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy. If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes. Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents undergraduate and ANU College students
• PARSA supports and represents postgraduate and research students