International Trade Fall 2003

ECONOMICS 365 International Trade Fall 2003 Instructor: S. Dodaro Office: Immaculata Hall, 401 PlacePhone: 867-3945 Email: [email protected]

Office Hours:

Tuesday: 10:30 a.m. – 2:00 p.m. Wednesday: 12:30 p.m. – 2:00 p.m. Friday: 9:30 a.m. – 12:00 p.m. At Other Times by appointment

Course Description

The course provides an in depth analysis of the theory and practice of international trade. It addresses and examines many of the most pressing issues facing the international economic environment along with their policy implications.

Student Evaluation

1) 3 of 4 Assignments ………………………. 30.0% 2) 2 term tests ………………………………. 30.0% 3) Final Examination ……………………….. 40.0%

Required Text:

Dominick Salvatore, International Economics eight Edition (Wiley, 2004)

Supplementary Texts: (Some available on reserve in the library)

 John Adams (ed). The Contemporary International Economy: A Reader, Second Edition (St. Martin's Press, 1985).  R. E. Baldwin & J. D. Richardson (eds). International Trade and Finance, Third Edition (Little, Brown, 1986).  R. E. Baldwin & J. D. Richardson (eds). International Trade and Finance, Second Edition (Little, Brown, 1981).  Jagdish N. Bhagwati (ed). International Trade: Selected Readings (MIT Press, 1987).  Linda S. Goldberg and Michael W. Klein (eds). Current Issues in the International Economy (Harper Collins, 1992).  R. E. Caves & H. G. Johnson (eds). American Economic Association, Readings in International Economics (Richard D. Irwin, Inc., 1968).  H. S. Ellis & L. A. Metzler (eds). American Ecomonic Association, Readings in the Theory of International Trade (Richard D. Irwin, Inc., 1950).  G. M. Grossman and K. Rogoff (eds). Handbook of International Economics Vol. 3 (North-Holland, 1995) 1  R. W. Jones & P. B. Kenen (eds). Handbook of International Economics, Vols. I & II (North- Holland, 1985).  Philip King (ed). International Economics and International Economic Policy: A Reader (McGraw- Hill, 1990).  Philip King (ed). International Economics and International Economic Policy: A Reader Second Edition (McGraw-Hill, 1995).  Mordechai Kreinin (ed). Contemporary Issues in Commercial Policy (Pergamon, 1995).  P. R. Krugman. Pop Internationalism (MIT Press, 1996).  Edward Leamer (ed). International Economics (Worth Publishers, 2001)  John M. Letiche (ed). International Economic Policies and their Theoretical Foundations (Academic Press, 1982).  John M. Letiche (ed). International Economic Policies and their Theoretical Foundations Second Edition (Academic Press, 1992).  Alan Winters and David Greenaway (eds). Surveys in International Trade (Basil Blackwell, 1994).

Additional Texts

 Stephen A. Baker. An Introduction to International Economics (Harcourt Brace Jovanovich, 1990).  Wilson B. Brown and Jan S. Hogendorn. International Economics in the Age of Globalization (Broadview Press, 2000)  Robert J. Carbaugh. International Economics, Fourth Edition (Wadsworth, 1991).  R. E. Caves, J. A. Frankel & R. W. Jones, World Trade and Payments, Fifth Edition (Harper Collins, 1990).  Miltiades Chacholiades. International Economics (McGraw-Hill, 1990).  P. T. Ellsworth & J. C. Leith. The International Economy, Fifth Edition (Macmillan, 1975).  Steven Husted & Michael Melvin. International Economics (Harper & Row, 1990).  Mordechai E. Kreinin. International Economics: A Policy Approach, Sixth Edition (Harcourt Brace Jovanovich, 1991).  Paul R. Krugman and Maurice Obstfeld. International Economics, Second Edition (Harper Collins, 1991).  Peter H. Lindert. International Economics, Ninth Edition (Irwin, 1991).  James R. Markusen and James R. Melvin. The Theory of International Trade and Its Canadian Applications (Butterworths, 1984)  J. D. Richardson. Understanding International Economics, Theory and Practice (Little, Brown, 1980).  Franklin R. Root. International Trade and Investment Seventh Edition (South-Western Publishing Co., 1994)  B. Södersten. International Economics, Second Edition (Macmillan, 1980).  Beth V. Yarbrough and Robert M. Yarbrough. The World Economy: Trade and Finance, Fifth Edition (Dryden Press, 1999).  Ingo Walter & Kaj Areskoug. International Economics, Third Edition (John Wiley and Sons, 1981).  John Williamson. The Open Economy and the World Economy (Basic Books, 1983).

Additional Useful References:

2  Victor Argy. The Postwar International Monetary Crisis (Allen & Unwin, 1981).  Kyle Bagwell and Robert W. Staiger. The Economics of the World Trading System (MIT Press, 2003)  Baldwin, Richard E., Daniel Cohen, Andre Sapir and Anthony J. Venables (eds). Market Integration, Regionalism and the Global Economy (Cambridge University Press, 1999)  R. E. Baldwin (ed). Trade Policy Issues and Empirical Analysis (University of Chicago Press, 1988).  Bhagwati, Jagdish, Free Trade Today (Princeton University Press, 2002)  Jagdish N. Bhagwati (ed). International Trade: Selected Readings (MIT Press, 1981).  Jagdish N. Bhagwati. Political Economy and International Economics (MIT Press, 1991).  Jagdish N. Bhagwati. Free Trade, 'Fairness' and the New Protectionism (Wincott Foundation, 1995).  Jagdish N. Bhagwati and Robert E. Hudec (eds). Fair Trade and Harmonization Vols 1 & 2 (MIT Press, 1996).  Jagdish N. Bhagwati and T. N. Srinivasan. Lectures on International Trade (MIT Press, 1983).  Castro, P. Mehaut and J. Rubery (eds). International Integration and Labour Market Organization (Academic Press, 1992)  Dorothy B. Christelow. When Giants Converge: The Role of U.S.-Japan Direct Investment (M.E. Sharpe, 1995).  N. C. Clement, G. del Castillo Vera, J. Gerber, W. A. Kerr, A. J. MacFadyen, S. Shedd, E. Zepeda & D. Alarcon. North American Economic Integration: Theory and Practice (Edward Elgar, 1999)  Richard N. Cooper. Economic Policy in an Interdependent World: Essays in World Economics (MIT Press, 1986).  Clive Crook. "A Survey of World Trade." Economist 22-28 September 1990.  Bhagirath L. Das. The World Trade Organization: A Guide to New Frameworks for International Trade (Palgrave, Zed Books, 2000)  Jean Daudelin and Edgar J. Dosman (eds). Beyond Mexico (Oxford University Press, 1995)  Jaime de Melo and Arvind Panagarija (eds). New Dimensions in Regional Integration (Cambridge University Press, 1993).  William Diebold (ed). Bilateralism, Multilateralism and Canada's US Trade Policy (Fitzhenry, 1988).  Carlos F. Diaz-Alejandro and Gerald K. Helleiner. Handmaiden in Distress (North-South Institute, 1982).  Rudiger Dornbusch & Jacob A. Frenkel (eds). International Economic Policy: Theory and Evidence (Johns Hopkins Univ. Press, 1979).  Daniel Drache and Meric S. Gertler. New Era of Global Competition (McGill University Press, 1991).  Dunkley, Graham. The Free Trade Adventure: The WTO, the Uruguay Round and Globalization - A Critique (Palgrave, Zed Books, 2000)  J. H. Dunning (ed). International Investment (Penguin Books, 1972).  J. H. Dunning. International Production and Multinational Enterprise (Allen & Unwin, 1981).  Khosrow Fatemi (ed). International Trade in the 21 st Century (Pergamon, 1997)  Ronald Findley. Factor Proportions, Trade and Growth (MIT Press, 1995)  Kenneth A. Froot (ed). Foreign Direct Investment (Univ. of Chicago Press, 1994).  Steven Globerman and Michael Walker (eds). Assessing NAFTA (Fraser Institute, 1993)  Gomory, Ralph E. & William J. Baumol. Global Trade and Conflicting National Interests (MIT Press, 2001)  S. F. Goodman. The European Community Second Edition (Macmillan, 1993).  Nigel Grimwade. International Trade: New Patterns of Trade, Production and Investment (Routledge, 1989). 3  R. Grinspun and M. Cameron (eds). The Political Economy of North American Free trade (N.Y., 1993),  Gene Grossman (ed). Imperfect Competition and International Trade (MIT Press, 1992).  Gene Grossman and Elhanan Helpman. Innovation and Growth in the Global Economy (MIT Press, 1991)  Gene Grossman and Elhanan Helpman. Interest Groups and Trade Policy (Princeton University Press, 2002).  Jeffrey Harrop. Political Economy of Integration in the European Community (Gower, 1989).  Gerald K. Helleiner. International Economic Disorder (University of Toronto Press, 1981)  Gerald K. Helleiner (ed). A World Divided: The Less Developed Countries in the International Economy (Cambridge University Press, 1976)  E. Helpman and A. Razin (eds). International Trade and Trade Policy (MIT Press, 1991).  Thomas W. Hertel. Global Trade Analysis: Modeling and Application (Cambridge University Press, 1999)  Bernard M. Hoekman, Philip English and Aatatya Mattoo (eds). Development, Trade and the WTO: A Handbook (World Bank, 2002)  Peter Hooper. International Economic Transactions (University of Chicago Press, 1991).  Michael Hudson. Trade, Development and Foreign Debt Vols 1 & 2 (Garamond Press, 1992).  Gary C. Hufbauer and Jeffrey J. Schott. North American Free Trade: Issues and Recommendations (Institute for International Economics. 1992).  Zubair Iqbal and Mohsin Kahn (eds). Trade Reform and Regional Integration in Africa (IMF, 1999)  Douglas E. Irwin. Free Trade Under Fire (Princeton University Press, 2002)  Takatoshi Ito and Anne O. Krueger (eds). Trade and Protectionism (University of Chicago Press, 1993)  John H. Jackson. Restructuring the GATT System (Council on Foreign Relations, 1990)  Patrick J. Kehoe and Timothy J. Kehoe (eds). Modelling North American Economic Integration (Klewer, 1996).  Murray C. Kemp and Henry Y. Wan, Jr. The Welfare Economics of International Trade (EPAE, 1993)  Peter Kenen. The International Economy, Second Edition (Prentice Hall, 1989)  Krueger, Anne O. (ed). The WTO as an International Organization (Univ. of Chicago Press, 1998)  P. R. Krugman (ed). Strategic Trade Policy and the New International Economics (MIT Press, 1986).  P. R. Krugman. Rethinking International Trade (MIT Press, 1990).  P. R. Krugman. Geography and Trade (MIT Press, 1991).  P. R. Krugman and Alasdair Smith (eds). Empirical Studies on Strategic Trade Policy (University of Chicago Press, 1994).  Lal, Deepak. Unintended Consequence: The Impact of Factor Endowment, Culture and Politics on Long Run Economic Performance (MIT Press, 1998)  E.M. Leamer. Sources of International Comparative Advantage (MIT Press, 1984).  I. MacBean and P. N. Snowden. International Institutions in Trade and Finance (George Allen and Unwin, 1981).  Markusen, James R. Multinational Firms and the Theory of International Trade (MIT Press, 2002)  Jpseph A. McKinney. Created from NAFTA: The Structure, Function, and Significance of the Treaty’s Related Institutions Revised and Expanded Edition (M.E. Sharpe, 2000)  James R. Melvin. Trade in Services: A Theoretical Analysis (Institute for Research on Public Policy, 1989).  Peter Morici. Making Free Trade Work (Council on Foreign Relations, 1990).  Phedon Nicoliades. Liberalizing Trade in services (Council on Foreign Relations, ) 4  Robert A. Pastor. Toward A North American Community: Lessons from the Old World to the New (Institute for International Economics, 2001)  Michael E. Porter. The Competitive Advantage of Nations (Free Press, 1990).  Dominick Salvatore (ed). The New Protectionist Threat To World Welfare (North-Holland, 1987).  Dominick Salvatore (ed). Protectionism and World Welfare (Cambridge University Press, 1993).  F. M. Scherer and Richard Bolous. Unfinished Tasks: The New International Trade Theory and the Post-Uruguay Round Challenges (British-North American Committee, 1994).  Jeffrey J. Schott. Prospects for Free Trade of the Americas (Institute for International Economics, 2001)  Jeffrey J. Schott (ed). The WTO after Seattle (Institute for International Economics, 2001)  Murray G. Smith and Frank Stone (eds). Assessing the Canadian-U.S. Free Trade Agreement (Institute for Research on Public Policy, 1987).  Robert M. Stern (ed). U.S. Trade Policies in a Changing World Economy (MIT Press, 1989).  Richard M. Stern (ed). Trade and Investment in Services: Canada/US Perspectives (Ontario Economic Council, 1985).  Frank Stone. Canada, the GATT and the International Trade System (Institute for Research on Public Policy, 1984).  Dennis Swann (ed). The Single European Market and Beyond (Routledge, 1992).  M. A. G. Van Meerhaeghe. International Economic Institutions 7th edition (Kluwer, 1997)  N. Vousden. The Economics of Trade Protection (Cambridge Univ. Press, 1990).  John Whalley (Research Coordinator). Canada-United States Free Trade (University of Toronto Press, 1985).  John Whalley and Peter Uimonem. Trade and the Environment: Setting the Rules (Institute of International Economics, 1993)  World Trade Organization (WTO) Secretariat. Regionalism and the World Trading System (WTO, 1995).  Pan A. Yatopoulous. Exchange Rate Parity for Trade and Development (Cambridge University Press, 1995).  George Zis et al. International Economics (Longman, 1988).

Journals:

American Economic Review 5 Brookings Papers on Economic Activity Canadian Journal of Economics Challenge Economic Inquiry Economia Internazionale Economic Journal Economica Economist European Economic Review Finance and Development International Economic Review International Trade Journal IMF Staff Papers Journal of Economic Literature Journal of Economic Perspectives Journal of International Economics Journal of Political Economy Kyklos Manchester School of Economics and Social Studies Oxford Economic Papers Policy Options Quarterly Journal of Economics Review of Economics and Statistics Southern Economic Journal Weltwirtschaftliches Archiv World Economy

COURSE OUTLINE

All students are required to read the Salvatore text. Additional required reading may be assigned at the start of each topic and/or as part of the assignments. All other material is intended for students who wish to pursue specific topics further (or may wish to sample an alternate presentation). 6

1. Introduction

Salvatore, chapter 1 and appendix Brown & Hogendorn, chapter 1 Yarbrough & Yarbrough, chapter 1 Ellsworth & Leith, Introduction plus chapters 1 & 2 Markusen and Melvin, chapter 1

2. The Classical Theory of Comparative Advantage and Opportunity Costs.

Salvatore, chapter 2 and appendix Yarbrough & Yarbrough, chapter 2 Chacholiades, chapter 2 Markusen & Melvin, chapter 7

 David Ricardo. On the Principles of Political Economy and Taxation (1817), chapter 7.  G. F. MacDougall. "British and American Exports: A Study Suggested by the Theory of Comparative Costs", Economic Journal, Vol. 61, 1951, pp. 697-724. Reprinted in Caves & Johnson (AEA), chapter 32.  B. Balassa. "An Empirical Demonstration of Classical Comparative Cost Theory", Review of Economics and Statistics, August 1963, pp. 231-238.  R. M. Stern. "British and American Productivity and Comparative Costs in International Trade", Oxford Economic Papers, Vol. 14, 1962, pp. 275-296.

3. The Neo-classical Theory of International trade

(i) Production Possibilities Frontiers, Community Indifference Curves, Offer Curves and the Gains from trade

Salvatore, chapters 3-4 and appendices Yarbrough & Yarbrough, chapter 3 (pp. 52-68) & appendix A & B Markusen & Melvin, chapters 2-5 Chacholiades, chapter 3 Lindert, chapters 3 & 4 (pp. 65-73)

(ii) The Heckscher-Ohlin Theorem

Salvatore, chapter 5 & appendix Yarbrough & Yarbrough, chapters 3 (pp. 68-81) & 4 Chacholiades, chapter 4 Lindert, chapters 2 (pp.34-44) & 4 (pp. 73-91) Markusen & Melvin, chapters 8 & 9

 B. Ohlin. Interregional and International Trade (Harvard University Press, 1933 -or revised 1967 edition), chapters 1 & 2  R. W. Jones. "Factor Proportions and the Heckscher-Ohlin Theorem." Review of Economic Studies Vol. 24, January 1956, pp. 1-10. Reprinted in Jagdish Bhagwati (ed). International Trade (Penguin, 1970) 7  J. Vanek. "The Factor-Proportions Theory: the n-Factor Case." Kyklos 1968.  Wassily Leontief. "Domestic Production and Foreign Trade: The American Capital Position Re-examined." Economia Internazionale Vol. 7, no. 1, February 1954, pp. 3-32. Reprinted in Caves and Johnson (AEA), pp. 503-527.

(iii) Alternative Modern Theories of Trade

Salvatore, chapter 6 & appendix Yarbrough & Yarbrough, chapter 5 Chacholiades, chapter 5 Lindert, chapter 5 Markusen & Melvin, chapters 10 & 11

 D. B. Keesing. "Labor Skills and Comparative Advantage", American Economic Review, Vol. 56, pp. 249-258 (1966). Reprinted in Baldwin & Richardson (1974), pp. 4-15.  W. Gruber, D. Mehta and R. Vernon. "The R&D Factor in International Trade and International Investment of United States Industries," Journal of Political Economy, Vol. 75, February 1967, pp. 20-37. Reprinted in Baldwin & Richardson (1974), pp. 16-33.  S. B. Linder. An Essay on Trade and Transformation (John Wiley & Sons, 1961), especially pp. 86-89. Reprinted in Baldwin & Richardson (1974), pp. 43-54 and in Baldwin & Richardson (1981), pp. 40-51.  H. Grubel. "The Theory of Intra-Industry Trade," in I. A. McDougall and R. H. Snape (eds.), Studies in International Economics (North-Holland Publishing Co.). Reprinted in Baldwin & Richardson (1981), pp. 51-60.  R. Baldwin. "Determinants of the Commodity Structure of U.S. Trade," American Economic Review, Vol. 61, No. 1, May 1971, pp. 126-146. Reprinted in Baldwin & Richardson (1981), pp. 4-27.  R. Vernon. "International Investment and International Trade in the Product Cycle," Quarterly Journal of Economics, Vol. 80, May 1966, pp. 190-207. Reprinted in Baldwin & Richardson (1981), pp. 27-40.  R. Vernon. "The Product Cycle Hypothesis in a New International Environment", Oxford Bulletin of Economics and Statistics, November 1979. Reprinted in Adams (1985), pp. 408- 422.  I. Kravis. "Availability and Other Influences on the Commodity Composition of Trade", Journal of Political Economy, 1956.  B. W. Wilkinson. Canada's International Trade: An Analysis of Recent Trends and Patterns (Montreal: Canadian Trade Committee, 1968), especially chapter 5.  V. Posner. "International Trade and Technical Change", Oxford Economic Papers, October 1961, pp. 323-341.  G. C. Hufbauer. Synthetic Materials and the Theory of International Trade (Duckworth, 1965).  G. C. Hufbauer. "The Impact of National Characteristics and Technology on the Commodity Composition of Trade in Manufactured Goods", in R. Vernon (ed.), the Technology Factor in International Trade (Columbia University Press, 1970).  P. Krugman. "New Theories of Trade Among Industrial Countries", American Economic Review, Vol. 73, no. 2, May 1983, pp. 343-347. Reprinted in Adams (1985), pp. 17-23.  Alan V. Deardorff. "Testing Trade Theories and Predicting Trade Flows." in Jones and Kenen (Vol 1, 1984), pp. 467-517.  John H. Dunning. "What's Wrong - and Right - With Trade Theory?" International Trade Journal Vol. 9, no. 2, Summer 1995, pp. 163-202.

8 4. Growth and Trade

Salvatore, chapter 7 Yarbrough & Yarbrough, chapter 10. Chacholiades, chapter 6 Hogendorn & Brown, chapter 18 Södersten, chapters 10, 11, 12 (12 especially) Markusen & Melvin, chapter 19

 Harry G. Johnson. "Economic Development and International Trade", National f Konomisk Tidsskrift, 97 Bund 5-6 Hefte 1959, pp. 253-272. Reprinted in Johnson. Money, Trade and Growth (Harvard University Press, 1962), pp. 75-103 and in Caves and Johnson (AEA), chapter 12, pp. 281-299.  Jagdish Bhagwati, "Immiserizing Growth: A Geometrical Note", Review of Economic Studies, Vol. XXV, n. 3, June 1958, pp. 201-205. Reprinted in Caves and Johnson (AEA), chapter 18, pp. 300-305.  T. M. Rybczynski, "Factor Endowment and Relative Commodity Prices", Economica, Vol. XXII, n. 84, November 1955, pp. 336-341. Reprinted in Caves & Johnson (AEA), chapter 4, pp. 73-77.  R. Findlay. "Growth and Development in Trade Models." in Jones & Kenen Vol. 1 (1984), pp. 185-236.

5. The Theory of Protection and Commercial Policy

Salvatore, chapters 8 & 9 and appendices Brown & Hogendorn, chapters 4 - 8 Yarbrough & Yarbrough, chapters 6-8 and appendices. Lindert, chapters 6-8 & 13 Chacholiades, chapters 7-9 Grimwade, chapter 7. Richardson, chapters 10 & 11. Markusen & Melvin, chapters 13-15

 Wolfgang F. Stolper & Paul A. Samuelson. "Protection and Real Wages", Review of Economic Studies, Vol. IX, November 1941, pp. 58-73. Reprinted in Ellis & Metzler (AEA), chapter 15, pp. 333-357.  Tibor de Scitovszky. "A Reconsideration of the Theory of Tariffs", Review of Economic Studies, Vol. IX, Summer 1942, pp. 89-110. Reprinted in Ellis & Metzler (AEA), chapter 16, pp. 358-389.  Lloyd A. Metzler. "Tarrifs, the Terms of Trade, and the Distribution of National Income", Journal of Political Economy, Vol. LVII, n. 1, February 1949, pp. 1-29. Reprinted in Caves & Johnson (AEA), chapter 2, pp. 24-57.  H. C. Eastman & S. Stykolt. The Tariff and Competition in Canada (Macmillan, 1967). Especially chapters 1-5.  Gary Burtless. "International Trade and the Rise in Earnings Inequality." Journal of Economic Literature Vol. 33, no. 2, June 1995, pp. 800-816.  Robert E. Baldwin. "Are Economists' Traditional Trade Policy Views Still Valid?" Journal of Economic Literature Vol. 30, no. 2, June 1992, pp. 804-829.

9  Robert E Baldwin. "Trade Policies in Developed Countries." in Jones and Kenen (Vol. 1, 1984), pp. 571-619. Reprinted in abbreviated form in Baldwin and Richardson (1986), pp. 39- 48.  Charles Pearson and Gerry Salembier. "Adjustment, Protection, and Employment." in Trade, Employment, and Adjustment (Institute for Research on Public Policy, 1983). Reprinted in Baldwin and Richardson (1986), pp. 74-84.  Paul R. Krugman. "The Narrow and Broad Arguments for Free Trade." in American Economic Review Vol. 83, no. 2, May 1993, pp. 362-366.  Paul R. Krugman. "Is Free Trade Passe?" Journal of Economic Perspectives Vol. 1, no. 2, Fall 1987, pp. 131-141. Reprinted in King (1990), pp. 91-107 and King (1995), pp. 21-32.  Paul Krugman. "Strategic Sectors and International Competition." in Stern (1989), pp. 207-232.  Rachel McCulloch. "The Optimality of Free Trade: Science or Religion." American Economic Review Vol. 83, no. 2, May 1993, pp. 367-371.  Robert Feenstra. "How Costly is Protectionism?" Journal of Economic Perspectives Vol. 6, no. 3, pp. 159-178. Reprinted in King (1995), pp. 3-19.  Clemens F. J. Boonekamp. "Voluntary Export Restraints." Finance and Development Vol. 24, no. 4, pp. 2-5. Reprinted in King (1990), pp. 23-33.  Dorothy Christelow. "Japan's Intangible Barriers to Trade in Manufactures." Federal Reserve of New York Quarterly Review Winter 85-86. Reprinted in King (1990), pp. 41-56.  Richard N. Cooper. "Industrial Policy and Trade Distortion: A Policy Perspective." in Baldwin and Richardson (1986), pp. 122-140.  Bruce Scott. "Creating Comparative Advantage." from Bruce Scott. U.S. Competitiveness in the World Economy pp. 75-102. Reprinted in King (1990), pp. 78-90.  Laura D'Andrea Tyson. "Managed Trade: Making the Best of the Second Best." in Robert Lawrence and Charles Schultze (eds). An American Trade Strategy: Options for the 90s (Brookings Institution, 1990). Reprinted in King (1995), pp. 129-157.  Gene Grossman and J. David Richardson. "Strategic Trade Policy: A Survey of Issues and Early Analysis." from Grossman and Richardson. Strategic Trade Policy: A Survey of Issues and Early Analysis (National Bureau of Economic Research, 1984), pp. 10-35. Reprinted with some alterations in Baldwin and Richardson (1986), pp. 95-114  Michael Michaely. Theory of Commercial Policy (Philip Allan, 1977).  W. M. Corden. The Theory of Protection (Clarendon Press, Oxford University Press, 1971).  W. M. Corden. Trade Policy and Welfare (Oxford University Press, 1974).  Gary C. Hufbauer & Jeffrey J. Schott. Trading for Growth: The Next Round of the Trade Negotiations (Institute for International Economics, September 1985).  Jagdish Bhagwati. Protectionism (MIT Press, 1988).  Patrick Low. "International Trade and the Environment." World Bank Policy Research Bulletin January-February 1993, vol. 4, pp. 2-6. Reprinted in King (1995), pp. 275-281  Richard Harris. Trade, Industrial Policy and Canadian Manufacturing (Ontario Economic Council, 1984)  Richard Harris. Trade, Industrial Policy and International Competition (Ontario Economic Council, 1985)  H. Peter Gray. "The Costs of Freer Trade." International Trade Journal Vol. 10, no. 1, Spring 1996, pp. 49-62.  Paolo Guerrieri and Pier Carlo Padoan. "Strategic Trade Policy: A Review of the Theoretical Debate." International Trade Journal Vol. 10, no. 1, Spring 1996, pp. 85-103.  Robert E. Baldwin and Richard E. Baldwin. "Alternate Approaches to the Political Economy of Endogenous Trade Liberalization." European Economic Review Vol. 40, nos, 3-5, April 1996, pp. 775-782. 10  Richard B. Freeman. "Are Your Wages Set in Beijing?" Journal of Economic Perspectives Vol. 9, no. 3, Summer 1995, pp. 15-32.  Adrian Wood. "How Trade Hurt Unskilled Workers." Journal of Economic Perspectives Vol. 9, no. 3, Summer 1995, pp. 57-80.  Robert Read, "The Anatomy of the EU-US WTO Banana Trade Dispute" Estey Centre Journal of International Law and Trade Policy Vol. 2, no. 2, 2001.

6. Economic Integration, Customs Union Theory and Extensions

Salvatore, chapter 10 and appendix Brown and Hogendorn, chapter 9 Yarbrough & Yarbrough, chapter 9. Chacholiades, chapter 10. Lindert, chapter 9. Markusen & Melvin, chapter 16

 R. G. Lipsey. "The Theory of Customs Unions: A General Survey", Economic Journal, Vol. LXX, September 1960, pp. 496-513. Reprinted in Caves & Johnson (AEA), chapter 16, pp. 261-278.  Bela Balassa. "Trade Creation and Trade Diversion in the European Common Market: An Appraisal of the Evidence", Manchester School of Economics and Social Studies, Vol. 42, n. 2, June 1974, pp. 93-135.  Economic Council of Canada. Looking Outward, A New Trade Strategy for Canada (Ottawa: Queen's Printer, 1975), especially chapters III, VIII and IX.  Augusto de la Torre & Margaret R. Kelly. Regional Trade Arrangements (IMF Occasional Paper #93, March 1992).  Robert E. Baldwin. "Customs Unions, Preferential Systems andWorld Welfare", in Michael B. Connolly & Alexander K. Swoboda (eds.), International Trade and Money (University of Toronto Press, 1973), chapter 2, pp. 29-44.  J. E. Meade. The Theory of Customs Unions [(North-Holland, 1955) and 1968 - 3rd printing].  Paul Wonnacott. The United States and Canada: The Quest for Free Trade (Institute for International Economics, March 1987).  Richard G. Lipsey & Murray G. Smith. Taking the Initiative: Canada's Trade Options in a Turbulent World (C.D. Howe Institute, May 1985).  Murray G. Smith & Frank Stone (eds). Assessing the Canada-U.S. Free Trade Agreement (Institute for Research on Public Policy, 1987).  S. J. Randall, H. Konrad & S. Silverman (eds). North America Without Borders (Univ. of Calgary Press, 1992).  Linda M. Aguilar. "NAFTA: A Review of the Issues." Economic Perspectives (Federal Reserve Bank of Chicago, 1992). Reprinted in King (1995), pp. 183-190.  Michael Hart. "A Brave New World: Trade Policy and Globalization." Policy Options Vol. 13, 10. 10, January-February 1993, pp. 3-7.  Ricardo Grinspun. "Do FTAs Help Us Live a Better Life." Policy Options Vol. 13, no. 10, january-February 1993, pp. 17-21.  Charles Bram Cadsby and Kenneth Woodside. "The Effects of the American Free Trade Agreement on the Canada-United States Trade Relationship." Canadian Public Policy Vol. 19, no. 4, December 1993, pp. 450-462.  K. Fatemi and D. Salvatore. The North American Free Trade Agreement (Pergamon Press, 1993).

11  Harry Flam. "Product Markets and 1992: Full Integration, Large Gains?" Journal of Economic Perspectives Vol. 6, no. 4, Fall 1992, pp. 7-30. Reprinted in King (1995), pp. 191-210.  Gerald K. Helleiner. "Considering US-Mexico Free Trade." in R. Grinspun and M. Cameron (eds). The Political Economy of North American Free Trade (N.Y., 1993), pp. 45-60.  Leonard Waverman. "The NAFTA Agreement: A Canadian Perspective." in Steven Globerman and Michael Walker (eds). Assessing NAFTA: A Trinational Analysis (Fraser Institute, 1993).  Carlo Perroni and John Whalley. "How Severe is Global Retaliation Risk under Increasing Regionalism?" American Economic Review Vol. 86, no. 2, May 1996, pp. 57-61.  Ronald J. Wonnacott. "Free-Trade Agreements: For Better or Worse?" American Economic Review Vol. 86, no. 2, May 1996, pp. 62-66  Daniel Schwanen. A Growing Success: Canada's Performance Under free Trade (C. D. Howe Institute, 1993).  William Watson. The Economic Impact of NAFTA (C. D. Howe Institute, 1993).  Richard G. Lipsey, Daniel Schwanen and Ronald J. Wonnacott. the NAFTA: What's In, What's Out, What's Next (C. D. Howe Institute, 1994).  Douglas A. Schuler, “The NAFTA and the Environment: Trade, Diplomacy and Limited Protection.,” International Trade Journal vol. 10, no. 3, Fall 1996, pp. 353-377.

7. Factor Mobility, Foreign Investment and Multinational Corporations

Salvatore, chapter 12 and appendix Brown and Hogendorn, chapter 19 Lindert, chapters 23 & 25 Root, chapters 22-24 Hogendorn & Brown, chapter 16 Richardson, chapter 13 Walter & Areskoug, chapter 16 Södersten, chapter 21 Markusen & Melvin, chapters 17 & 18

 G. D. A. MacDougall. "The Benefits and Costs of Private Investment from Abroad: A Theoretical Approach", Economic Record, 1960, pp. 13-35. Reprinted in John H. Dunning (ed.), International Investment (Penguin Books, 1972), chapter 5, pp. 129-158. Also reprinted in Caves & Johnson (AEA), chapter 10, pp. 172-194.  R. E. Caves. "International Corporation: The Industrial Economics of Foreign Investment", Economica, Vol. 38, 1971, pp. 1-27. Reprinted in J. H. Dunning (ed.), International Investment (Penguin Books, 1972), chapter 11.  Richard E. Caves. Multinational Enterprise and Economic Analysis (Cambridge University Press, 1982).  S. Hymer. "The Efficiency (Contradictions) of Multinational Corporations," American Economic Review, Vol. 60, No. 2, May 1970, pp. 441-453. Reprinted in Baldwin & Richardson (1981) pp. 296-308.  S. Hymer. "The Multinational Corporation and the Law of Uneven Development." in J. N. Bhagwati (ed). Economics and the World Order: From the 1970s to the 1990s (Free Press, 1972). Reprinted in Letiche (1992), pp. 436-463.  A. E. Safarian. "Perspectives on Foreign Direct Investment from the Viewpoint of a Capital Receiving Country", Journal of Finance, May 1973. Reprinted as a preface to A. E. Safarian, Foreign Ownership of Canadian Industry, 2nd edition.

12  A. E. Safarian. Foreign Direct Investment: A Survey of Canadian Research (Institute for Research on Public Policy, 1985).  J. H. Dunning. "Explaining Changing Patterns of International Production: In Defence of the Eclectic Theory", Oxford Bulletin of Economics and Statistics, November 1979, pp. 269-295.  Charles P. Kindleberger. "The Theory of Direct Investment", in American Business Abroad (New Haven, yale University Press, 1969), pp. 1-36. Reprinted in Baldwin & Richardson (1974), pp. 267-285.  H. G. Johnson. "The Efficiency and Welfare Implications of the International Corporation", in C. P. Kindleberger (ed.), The International Corporation (MIT Press, 1970), chapter 2, pp. 35- 56.  G. K. Helleiner. "The Role of Multinational Corporations in the Less Developed Countries' Trade in Technology", World Development, Vol. 3, n. 4, April 1975, pp. 161-189.  Steven Globerman. "Foreign Direct Investment and `Spillover' Efficiency Benefits in Canadian Manufacturing Industries", Canadian Journal of Economics, Vol. XII,n. 1, February 1979, pp. 42-56.  Philip King. "The Multinational Corporation: Pro and Con." in King (1990), pp. 234-252.  Paul Streeten. "Multinationals Revisited." Finance and Development Vol. 16, June 1979, pp. 39-42. Reprinted in Baldwin and Richardson (1986), pp. 248-254.  Geoffrey S. Carroll. "Multinational Reshuffle." Europe no. 231, May-June 1982, pp. 12-15. Reprinted in Baldwin and Richardson (1986), pp. 236-247.  Harvey E. Bale, Jr. "Trade policy Aspects of International Direct Investment Policies." in R. E. Baldwin (ed). Current Issues and Initiatives in U.S. Trade Policy (NBER, 1984), pp. 67-100. Reprinted in Baldwin and Richardson (1986), pp. 180-198.  Raymond Vernon. "Sovereignty At Bay, Ten Years Later." International Organization Vol 35, no. 3. Reprinted in Adams (1985), pp. 423-435.  Jane Sneddon Little. "Multinational Corporations and Foreign Investment: Current Trends and Issues." The ANNALS of the American Academy of Political and Social Science Vol. 460. Reprinted in Adams (1985), pp. 397-407  David Rayome and James C. Baker. "Foreign Direct Investment: A Review and Analysis of the Literature." International Trade Journal Vol. 9, no. 1, Spring 1995, pp. 3-37.  G. Borjas. "The Economics of Immigration." Journal of Economic Literature Vol. 32, no. 4, December 1994, pp. 1667-1717.  Rachel M. Friedberg and Jennifer Hunt. "The Impact of Immigrants on Host Country Wages, Employment and Growth." Journal of Economic Perspectives Vol.9, no. 2, Spring 1995, pp. 23-44.

8. International Trade and Third World Development

Salvatore, chapter 11 and appendix Yarbrough & Yarbrough, chapter 11 Root, chapters 20 & 21 Lindert, chapter 12 Krugman & Obstfeld, chapter 10 Hogendorn & Brown, chapter 19 Södersten, chapter 18 Kreinin, chapter 17

13  Jere R. Behrman. Development, the International Economic Order, and Commodity Agreements (Addison-Wesley, 1978).  Henry J. Bruton. “A Reconsideration of Import Substitution” Journal of Economic Literature vol. 36, no. 2, June 1998, pp. 903 – 936.  Sebastian Edwards. "Openness, Trade Liberalization, and Growth in Developing Countries." Journal of Economic Literature Vol. 31, no. 3, September 1993, pp. 1358-1393.  Rudiger Dornbusch. "The Case for Trade Liberalization in Developing Countries." Journal of Economic Perspectives Vol. 6, no. 1, Winter 1992, pp. 69-85. Reprinted in King (1995), pp. 215-229.  Dani Rodrick. "The Limits of Trade Policy Reform in Developing Countries." Journal of Economic Perspectives Vol. 6, no. 1, Winter 1992, pp. 87-105. Reprinted in King (1995), pp. 231-246.  Anne O. Krueger. "Import Substitution versus Export Promotion." Finance and Development Vol. 22, no. 2, June 1985, pp. 20-23. Reprinted in King (1990), pp. 155-165.  Anne O. Krueger. "Trade Policies in Developing Countries." in Jones and Kenen (Vol. 1, 1984), pp. 519-569.  Paul Streeten. "A Cool Look at 'Outward-Looking Strategies for Development." World Economy Vol. 5, no. 2, September 1982, pp. 159-169. Reprinted in Baldwin and Richardson (1986), pp. 222-231.  Graham Bird (ed). International Aspects of Economic Development (Academic Press, 1992).  Gerald K. Helleiner (ed). For Good or Evil: Economic Theory and North-South Negotiations (University of Toronto Press, 1982) chapter 1.  Gerald K. Helleiner. "Underutilized Potential: Canada's Economic Relations with Developing Countries." in John Whalley (ed). Canada and the Multilateral Trading System (University of Toronto Press, 1985)  Gerald K. Helleiner. The New Global Economy and the Developing Countries (Edward Elgar, 1990)  Gerald K. Helleiner (ed). The Other Side of International Development Policy (University of Toronto Press, 1989)  Dominick Salvatore. "International Trade Policies, Industrialization, and Economic Development." International Trade Journal Vol. 10, no. 1, Spring 1996, pp. 21-47.

9. International Trade and Globalization

 John Dunnimg (ed.), Globalization, Trade and Foreign Direct Investment (Pergamon Press, 1998)  Dani Rodrik, Has Globalization Gone Too Far? (Institute for International Economics, 1997)