• Unit 2: International Trade Policy

    The previous unit addressed why nations trade by describing the causes and effects of international trade and the functioning of a trade world economy. While this question is interesting in and of itself, its answer is much more interesting if it helps us determine what a nation's trade policy should be.

    In this unit, we will begin our investigation of trade policy issues by analyzing the implications of tariffs for trade and welfare. We will then move on to non-tariff barriers and their implications before concluding with a discussion of the arguments for restricting trade and an overview of the political economy of trade policy.

    Completing this unit should take you approximately 8 hours.

    • 2.1: The Instruments of Trade Policy

    • 2.2: The Political Economy of Trade Policy

    • 2.3: Trade Policy in Developing Countries

    • 2.4: Controversies in Trade Policy