Course and Examination Fact Sheet: Spring Semester 2024
8,264: International Trade
ECTS credits: 4
Overview examination/s
(binding regulations see below)
decentral ‑ Analog written examination, Analog, Individual work individual grade (80%, 90 mins.)
Examination time: Term time
decentral ‑ Presentation, Analog, Group work group grade (20%)
Examination time: Term time
Attached courses
Timetable ‑‑ Language ‑‑ Lecturer
8,264,1.00 International Trade ‑‑ English ‑‑ Schetter Ulrich
Course information
Course prerequisites
Basics in micro‑ and macroeconomics. Working knowledge of micro theory.
The course aims mainly at MEcon, MiQEF and MIA students.
Learning objectives
Learning goals: Building on a solid understanding of basic micro‑ and macroeconomics, the participants of the course acquire
knowledge on why countries trade, how they (might) benefit, and how to study international trade empirically, supporting them
in forming and expressing critical views on public and policy debates in this area.
Qualifications: The course prepares students for a high‑quality level analysis of international trade. The students will
understand and learn to apply key methods on which the literature on international trade is founded. This will prepare them for
conducting research – e.g. for their Master’s or Ph.D. theses or in central banks – on topics related to international trade.
Course content
Why do countries trade, and who gains from trade liberalizations and globalization? To answer these central questions, this
course provides an in‑depth treatment of modern theories of international trade. We discuss their empirical validity and
illustrate their relevance through anecdotal evidence.
First, we review classical trade theory: trade occurs due to (i) productivity differences (Ricardo model) or (ii) different factor
endowments (Heckscher‑Ohlin). We investigate the general reason why there are gains from trade and discuss the empirical
validity of classic trade models. Second, we analyze “gravity” models of international trade. We first discuss the Ricardian
benchmark, the Eaton‑Kortum (2002) model, and then turn to the new trade theory. Here, trade happens within industries (intra‑
industry) due to increasing returns to scale and love‑of‑variety. We consider the case of homogeneous firms (Krugman model)
and heterogeneous firms (Melitz model). We finally discuss how these models give rise to a gravity equation and their empirical
merit. We conclude by giving an outlook on other topics in international trade and related fields.
Course structure and indications of the learning and teaching design
Weekly lectures combined with exercises and student presentations.
Course literature
Fact sheet version: 1.0 as of 03/01/2024, valid for Spring Semester 2024
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Course reading:
Reto Foellmi and Stefan Legge, Lecture Notes in International Trade, Manuscript, 2022
Robert C. Feenstra, Advanced International Trade: Theory and Evidence, Second Edition, Princeton University Press, 2016
Further reading:
Jones, Ronald; Globalization and the Theory of Input Trade, MIT Press, 2000.
Markusen, James, James Melvin, William Kaempfer, and Keith Markus; International Trade: Theory and Evidence, McGraw Hill,
1995.
References to journal articles and working papers are given in class.
Additional course information
‑‑
Examination information
Examination sub part/s
1. Examination sub part (1/2)
Examination modalities
Examination type Analog written examination
Responsible for organisation decentral
Examination form Written exam
Examination mode Analog
Time of examination Term time
Examination execution Synchronous
Examination location On Campus
Grading type Individual work individual grade
Weighting 80%
Duration 90 mins.
Examination languages
Question language: English
Answer language: English
Remark
‑‑
Examination-aid rule
Closed Book
The use of aids is prohibited as a matter of principle, with the exception of pocket calculator models of the Texas Instruments TI‑
30 series and, in case of non‑language exams, bilingual dictionaries without any handwritten notes. Any other aids that are
admissible must be explicitly listed by faculty members in the paragraph entitled “Supplementary aids” of the course and
examination fact sheet; this list is exhaustive.
Procuring any aids, as well as ensuring their working order, is the exclusive responsibility of students.
Supplementary aids
All pocket calculators of the Texas Instruments TI‑30 series and mono‑ or bilingual dictionaries (no subject‑specific dictionaries)
without hand‑written notes are admissible.
Fact sheet version: 1.0 as of 03/01/2024, valid for Spring Semester 2024
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Any other pocket calculator models and any electronic dictionaries are inadmissible. In addition, any type of communication, as
well as any electronic devices that can be programmed and are capable of communication such as notebooks, tablets, mobile
telephones and others, are inadmissible.
Students are themselves responsible for the procurement of examination aids.
2. Examination sub part (2/2)
Examination modalities
Examination type Presentation
Responsible for organisation decentral
Examination form Oral examination
Examination mode Analog
Time of examination Term time
Examination execution Asynchronous
Examination location On Campus
Grading type Group work group grade
Weighting 20%
Duration ‑‑
Examination languages
Question language: English
Answer language: English
Remark
‑‑
Examination-aid rule
Free aids provision
Basically, students are free to choose aids. Any restrictions are defined by the faculty members in charge of the examination
under supplementary aids.
Supplementary aids
Practical examination (Decentral ‑ Presentation in groups ‑ all given the same grades) (20%). Students can choose between a
group presentation or a short group report.
Examination time: term time
No examination‑aid rule is necessary for such examination types. The rules and regulations of the University of St. Gallen apply
in a subsidiary fashion.
Examination content
I. Written Exam (80%)
Material covered in class, slides, exercises, and chapters 1 to 9 of the script.
II. Short Summary with Presentation (20%)
Term paper in groups (two students each) on a scientific paper. The independent studies part is fulfilled by either
a) Presentation (15 min) plus handout (slides of the presentation).
or
b) Short summary plus own evaluation (ʺreferee reportʺ) of the paper: The maximum length is 5 pages (3’000 words, 20’000
symbols). The papers which are to be presented are announced on Canvas.
Fact sheet version: 1.0 as of 03/01/2024, valid for Spring Semester 2024
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Examination relevant literature
Reto Foellmi and Stefan Legge, Lecture Notes in International Trade, Manuscript, 2020
Please note
Please note that only this fact sheet and the examination schedule published at the time of bidding are binding and takes
precedence over other information, such as information on StudyNet (Canvas), on lecturersʹ websites and information in
lectures etc.
Any references and links to third‑party content within the fact sheet are only of a supplementary, informative nature and
lie outside the area of responsibility of the University of St.Gallen.
Documents and materials are only relevant for central examinations if they are available by the end of the lecture period
(CW21) at the latest. In the case of centrally organised mid‑term examinations, the documents and materials up to CW 13
are relevant for testing.
Binding nature of the fact sheets:
Course information as well as examination date (organised centrally/decentrally) and form of examination: from
bidding start in CW 04 (Thursday, 25 January 2024);
Examination information (supplementary aids, examination contents, examination literature) for decentralised
examinations: in CW 12 (Monday, 18 March 2024);
Examination information (supplementary aids, examination contents, examination literature) for centrally
organised mid‑term examinations: in CW 13 (Monday, 25 March 2024);
Examination information (regulations on aids, examination contents, examination literature) for centrally
organised examinations: Starting with de‑registration period in CW 15 (Monday, 08 April 2024).
Fact sheet version: 1.0 as of 03/01/2024, valid for Spring Semester 2024
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