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POLSC211: Introduction to International Relations

Unit 7: International Trade   This unit will explore international trade and the effects of globalization. We will learn about the concept of free trade, tariffs, and protectionism, and we will discuss how the World Trade Organization (WTO) serves as a mechanism for the mitigation of conflict. You will see how trade wars and tariffs unfairly punish certain nations and examine other critical trade issues in the global community.

Unit 7 Time Advisory
Completing this unit will take approximately 9 hours.

☐    Subunit 7.1: 6 hours ☐    Introduction: 1 hour

☐    Sub-subunit 7.1.1: 0.5 hours

☐    Sub-subunit 7.1.2: 0.5 hours

☐    Sub-subunit 7.1.3: 1 hour

☐    Sub-subunit 7.1.4: 3 hours

☐    Subunit 7.2: 3 hours

Unit7 Learning Outcomes
Upon successful completion of this unit, you will be able to: - describe specific issues that have relevance to the study of interstate relations, national security, war, economic integration, trade, and so forth; - discuss the nature and development of international organizations; - identify and discuss major issues of the international economy; and - discuss the economic relationship between the North and South.

7.1 Trade   - Lecture: YouTube: MIT’s Principles of Microeconomics “Lecture 19: International Trade” Link: YouTube: MIT’s Principles of Microeconomics “Lecture 19: International Trade” (YouTube)

 Instructions: Watch this lecture by Professor Jon Gruber.  

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7.1.1 Free Trade   - Reading: Liberty Fund, Inc.’s Library of Economics and Liberty: Professor Alan S. Blinder’s “Free Trade” Link: Liberty Fund, Inc.’s Library of Economics and Liberty: Prof. Alan S. Blinder’s “Free Trade” (HTML)
 
Instructions: Read the webpage linked above.
 
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7.1.2 Barriers to Trade   - Reading: Tutor2u: Geoff Riley’s Macroeconomics: “Protectionism” and The U.S. Department of State’s “Smoot-Hawley Tariff” Link: Tutor2u: Geoff Riley’s Macroeconomics: “Protectionism” (HTML) and The U.S. Department of State’s “Smoot-Hawley Tariff” (HTML)
 
Instructions: First read the tutorial on “Protectionism,” and then read the example, the “Smoot-Hawley Tariff.”

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7.1.3 Free Trade vs. Protectionism   - Reading: International Trade: Theory and Policy: “Chapter 10: Political Economy and International Trade” and “Chapter 11: Evaluating the Controversy between Free Trade and Protectionism” Link: International Trade: Theory and Policy: “Chapter 10: Political Economy and International Trade” (PDF) and “Chapter 11: Evaluating the Controversy between Free Trade and Protectionism” (PDF)
 
Instructions: Read both these chapters. In these two chapters, Suranovic outlines the political economy components of international trade policy. Note how Suranovic points to the importance of the concentrations and dispersion of the costs and benefits of trade policies that influence policy decisions.
 
Reading these chapters should take approximately 2 hours.
 
Terms of Use: The text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License without attribution as requested by the work's original creator or licensee.

7.1.4 Trade Wars   - Reading: Global Issues: Anup Shah’s “The Banana Trade War” Link: Global Issues: Anup Shah’s “The Banana Trade War” (HTML)

 Instructions: Read the webpage linked above.  

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7.1.5 Dispute Resolution Mechanism   - Reading: World Trade Organization’s “Understanding the WTO: Settling Disputes” Link: World Trade Organization’s “Understanding the WTO: Settling Disputes” (HTML)
 
Instructions: Read all three sections under “Settling Disputes” on the WTO webpage: “A unique contribution,” “The panel process,” and “Case study.” Use the left-hand navigation bar to read all three sub-sections, or use the “next” arrow to go to the next section. You do not need to follow the “more on dispute settlement” link at the bottom of the third page.  
 
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7.2 Globalization   - Reading: Petersen Institute for International Economics: Stanley Fischer’s “Globalization and Its Challenges” Link: Petersen Institute for International Economics: Stanley Fischer’s “Globalization and Its Challenges” (PDF)
 
Instructions: Scroll down the webpage to the title “Globalization and Its Challenges” (January 2003), and select the link.  
 
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