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2010/2011  KAN-CMO_3PEI  The Political economy of International Trade

English Title
The Political economy of International Trade

Course Information

Language English
Point 7,5 ECTS (225 SAT)
Type Elective
Level Full Degree Master
Duration One Semester
Course Period Autumn
Pending schedule: Mon.09.50-11.30, week 36-50
Time Table Please see course schedule at e-Campus
Study Board
Study Board for BSc in Service Management
Course Coordinator
Carl Jørgen Saxer - csaxer@hotmail.comSecretary Tina Forsingdal - tfo.int@cbs.dk
Main Category of the Course
  • International Political Economy

Taught under Open University-Taught under open university.
Last updated on 29 maj 2012
Learning Objectives
At the end of the course the students:

(a) are required to demonstrate a firm understanding of the workings of international political economy as it relates to trade;

(b) must have developed a comprehensive understanding of how developments in international political economy affects the international business environment;

(c) should possess a deep analytical understanding of international political economy and the workings and functions of the international organizations, institutions, and rules that underpin the global economy;

(d) must have the ability to relate developments in international political economy to its impacts on the international business environment.
4-hour individual written exam (closed book).
Exam Period Winter Term
Prerequisites for Attending the Exam
Course Content

This course in the political economy of international trade takes an interdisciplinary approach, examining the economics, law, and politics of this field. The focus will be on how international political economy affects the environment that international business encounters. As a consequence of the recent crisis governments have sought to increase regulation of not only international financial transactions, but trade in general has also seen further state intervention. This can, for instance, have the form of erecting trade barriers or engaging in negotiations on regional-and-bilateral trade agreements (RTAs and FTAs) now that global free trade negotiations seem to be going nowhere. Some of the topic that we will examine and analyze in detail are: instruments of trade policy (tariffs, treaties, and negotiating authority); the World Trade Organization and other international trade related organizations and institutions; regional-and-bilateral trade agreements (the focus will here be on the reasons for, and the consequences of, the rapid increase in Free Trade Agreements we have seen the last few years), and how trade disputes arise and are resolved. The course seeks to provide the students with an advanced understanding of international political economy as it refers to international trade policy. As such the students must gain a deep knowledge and understanding of the rules, politics, institutions, and the major policy issues and challenges facing the global trading system, and how these affect the international business environment.


Bernard Hoekman and Michel M. Kostecki, The Political Economy of the World Trading System, 3rd Edition, Oxford University Press, 2009.

Arvind Panagariya: “Miracles and Debacles: In Defense of Trade Openness,” World

Economy27, No 8, (special issue on Global Trade Policy), August 2004, pp. 1149-1159.

Stephen Tokarick, “Dispelling Some Misconceptions about Agricultural Trade Liberalization” Journal of Economic Perspectives, Vol. 22 Number 1, Winter 2008 pp. 199-216.

Roberto V. Fiorentino, et al., “The Changing Landscape

of Regional Trade Agreements: 2006 Update” WTO Discussion Paper.

WTO: Doha Development Agenda: Negotiations, implementation and development

Available at http://www.wto.org/english/tratop_e/dda_e/dda_e.htm.

Richard Baldwin and Simon Evenett (eds.) “The collapse of global trade, murky protectionism and the crisis”, (2009) Vox.org. Available at http://www.voxeu.org/reports/Murky_Protectionism.pdf.

Thomas Oatley, International Political Economy: Interests and Institutions in the Global Economy. 4th ed., Pearson-Longman, 2010.

Jeffry A.Frieden, David A. Lake,and J. Lawrence Broz,International Political Economy: Perspectives on Global Power and Wealth. 5th ed. W.W. Norton, 2010.