Summary

The purpose of the International Trade course is the study of the theoretical models that help us to understand why countries trade, and in each case, what is the source of gain from trade. This course explores the first "classical" theories of free trade with constant returns to scale. The following addresses the "New Trade Theory" which explores the role of economies of scale in trade. Finally, a presentation of the theoretical models developed in the framework of the "New-New Trade Theory," which examines the role of firm heterogeneity and the existence of sunk costs in trade is done. Although most of the topics addressed why countries exchange goods and what is the source of gains from trade, we also briefly discuss the international movement of factors (migration flows and foreign direct investment) and the phenomenon of "outsourcing " International (or international fragmentation of value chains).