Topic 21: International Trade

A) An introduction to International Trade

        Trade

        Typesof Trade

B) International Trade

        Meaningof International Trade

        Reasonsfor International Trade

        Theoriesof International Trade

                1.Absolute Advantage

                2.Comparative Advantage

C) Protectionism

        FreeTrade

        Protectionism

        Reasonsfor Protectionism

        Methodsof Protectionism

                1.Traditional Barriers to Trade

                    a) Tariff (Meaning, Types, Reasons,Economic Effects)

                     b) Quota (Meaning, Economic Effects)

                    c) Exchange Control / Currency Restrictions

                    d) Production Subsidies (Meaning, Types,Effects)

                    e) Embargoes

                2.Modern Barriers to Trade

D) Trade Blocs

       Meaning of Trade Blocs

       Advantages of forming a Trade Bloc

       Effects on an economyof being outside a trade bloc

        Typesof Trade Blocs

1.     Free Trade Areas

2.     Customs Unions

3.     Common Markets

4.     Economic Unions

E) International Organizations

·         European Union (EU)

               Meaning and Objectives

               Advantages and Disadvantages of EU Membership       

·         General Agreement on Tariff and Trade(GATT)

·         World Trade Organization (WTO)