International Trade: USA and Europe in an Interconnected World (IEF)

This course covers, with a focus on both theory and empirics, essential topics in international (interregional) trade and trade policy analysis at the undergraduate level. These basics are complemented by hands-on work with empirical data, and discussions of topic which appear in current debates on trade policies and protectionism. The course attempts to provide insight into the following questions: Why do countries (regions) trade? And how does trade influence the welfare of their citizens? What determines which goods/services will be exported/imported by particular countries? How do trade policies influence the effects of trade on economies and their welfare? How are US and EU policies formed and how do they differ? If US uses “Buy America/n”, is there something like “Buy European”? How can we identify and evaluate vulnerabilities caused by dependencies on countries such as China, Russia, etc.? What kind of sanctions can be used (and are used by the USA, EU, and China), and how do they influence welfare?

The course resembles standard courses in International Trade Theory as taught at many other undergraduate economics programs. However, besides theory, we will also attempt our own empirical analysis – i.e., you will learn what kind of data on trade is available and from which sources and how to work with them. Depending on your skills, you will also learn how to analyse the data (either in Excel or some more advanced type of software) and how to estimate the effects of, e.g., new tariffs or sanctions. Insight from current Czech and European debates on trade relations with China and the USA will be shared and discussed, too.

Pre-requisites:

Intermediate Microeconomics and Introductory Macroeconomics