AØKA08021U International Economics (p)
The purpose of the course is to give an introduction to traditional and new trade theories and selected topics in international monetary economics.
The course studies causes and consequences of international trade. We seek to answer questions such as:
- Why do countries trade?
- What do they trade?
- Who gains and who loses from trade?
- What is the impact of trade policy on welfare?
The course also considers aspects of the globalization debate:
- Is wage inequality affected?
- What are the implications of multinationals and offshoring?
- How would various policy changes discussed in the news affect trade, welfare and inequality?
The class centers on the work horse models of international trade: The Ricardian model, the Heckscher-Ohlin and the Krugman model, but extends on these and discuss modern theories of strategic trade policy. There will be a small number of empirical papers as well.
After completing the course the student is expected to be able to:
- Account for why international trade arises.
- Define and explain trade patterns under perfect and imperfect competition.
- Account for the extent to which there are welfare gains from trade.
- Analyze and calculate how trade affects the beahavious of firms and consumers and how trade affects welfare and inequality.
- Analyze and calculate how trade policy affectsfirm behaviour and analyze and calculate welfare implications of trade policy
- Convert the material of the class into actionable trade policies
- Understand, discuss and evaluate current policy proposals in light of the theory presented in the class.
- Brander, J. and P. Krugman (1983), A 'Reciprocal Dumping' Model of International Trade, Journal of International Economics, 15, p. 313-321.
- Brander, J. and B. Spencer (1985), Export Subsidies and International Market Share Rivalry, Journal of International Economics, 18, p. 83-100.
- Feenstra, R.C. (2016), Advanced International Trade, Theory and Evidence, 2nd edition, Princeton University Press. Selected parts of chapters 1, 2, 3, 4, 5, 7, 8, and 9.
- Autor, D; Dorn, D. and Hanson G. Untangling Trade and Technology: Evidence from Local Labour Markets, The Economic Journal, 2015
- Krugman, P. (1979), Increasing Returns, Monopolistic Competition, and International Trade, Journal of International Economics, 9, p. 467-476.
Especially the mathematical formalities of microeconomics are recommended.
Note, this is not an easy class. Understanding of differentiation, calculus etc. is taking as a given and the class is heavy in models.
In case of a pandemic like Corona the teaching in this course may be changed to be taught either fully or partly online. For further information, see the course room on Absalon.
3 hours lectures a week from week 6 to 20 (except holidays).
2 hours exercise class a week from week 6/7 to 21 (except holidays).
The overall schema for the 3rd year and Master courses can be seen at KUnet:
MSc in Economics => "courses and teaching" => "Planning and overview" => "Your timetable"
BA i Økonomi/KA i Økonomi => "Kurser og undervisning" => "Planlægning og overblik" => "Dit skema"
Timetable and venue:
To see the time and location of lectures please press the link/links under "Timetable"/"Se skema" at the right side of this page (F means Spring).
You can find the similar information partly in English at
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-F21; [Name of course]”
-Select Report Type: “List – Weekdays”
-Select Period: “Forår/Spring – Week 5-30”
Press: “ View Timetable”
- Class Instruction
Students will receive individual feedback on their written assignments.
In addition, the lecturer gives collective oral feedback for the quizzes the students take during the lectures.
For gæste- og enkelfagsstuderende: Tilmelding via Uddannelse i Økonomi.
- 7,5 ECTS
- Type of assessment
- Written examination, 3 hours under invigilationin the exam venues of the university.
The exam assignment is given in English and must be answered in English.
In the event that this summer's exams have to be conducted as online exams due to COVID-19, the exam form will be a 3 H take-home exam with aids. The reexam will be the same as the rescheduled ordinary exam, but possibly online orally if only few students register.
- Exam registration requirements
To qualify for the exam the student must during the semester and no later than the given deadlines:
- Hand in and have approved 3 out of 4 written assignments.
- Without aids
for the written exam.
In case of an oral reexam, please go to the section "Reexam" for further information about allowed aids.
- Marking scale
- 7-point grading scale
- Censorship form
- No external censorship
for the written exam. The exam may be chosen for external censorship by random check
- Exam period
The regular exam takes place:
9 June 2021
The exact time and room will be available in the Digital Exam from the middle of the semester.
In special cases, the exam date can be changed to another time and day. In case of COVID-19 restrictions, please refer to "Type of assessment".
The written reexam take place:
12 August 2021
NOTE: If only few students register for the written re-exam, the re-exam might change to a 20 minutes oral examination with 20 minutes preparation time.
All written aids allowed during the preparation time, no aids allowed during the examination.
If changed to an oral re-exam, the exam date, time and place might change as well. The Examination's Office then inform the students by KU e-mail. In case of COVID-19 restrictions, please refer to "Type of assessment".
Info is available in Digital Exam early August.
Criteria for exam assesment
Students are assessed on the extent to which they master the learning outcome for the course.
To receive the top grade, the student must with no or only a few minor weaknesses be able to demonstrate an excellent performance displaying a high level of command of all aspects of the relevant material and can make use of the knowledge, skills and competencies listed in the learning outcomes.