Trade Theory
Protectionism & Integration
Unit Readings
Chapter 23:
Why do Countries Trade?
Chapter 24:
Free and Protected Trade
Chapter 25:
Integration
Chapter 26:
Exchange Rates
Chapter 27:
Balance of Payments
Why Do Countries Trade?
Google Doc for Trade
Slides for Why do Countries Trade
Slides for Absolute and Comparative Advantage
Absolute and Comparative Advantage Explained
Here you will find two versions of the same worksheet where you can practice the mathematical calculations related to comparative advantage theory.
Free Trade and Protectionism
Slides for Protectionism
Google Doc Protectionism
Import Tariff Explained
Protectionist Subsidy Explained
Import Quota Explained
There are several ways to analyze an import quota depending on who keeps the economic rent (quota license) and where you choose to plot the import quota. I will try to explain these differences in class.
Export Tariff Explained (not sure if this is required of the IB Syllabus)
Import Tariff WS
Subsidy WS
Quota WS
Export Tariff WS
Here you will find all the diagrams related to protectionism.
Google Quiz for Trade and Protectionism
Economic Integration
Slides for Integration
Google Doc
Integration Explained
Very interesting article on the likely impact of Uzbekistan joining the WTO. I recommend everyone read it and understand it. A great 'real world' example.
WTO Explained
Higher LEvel
Trade Creation and Trade Diversion Explained
Creation of the European Monetary Union
Pros and Cons of the European Monetary Union
Explanation of the European Central Bank