The Global Economy

ECON 1535 Subject & Catalog Number

Description

A wave of protectionism has rocked the world economy in recent years. In the United States, the Trump administration abandoned the country's traditional position as a defender of international trade, viewing global trade as a “zero-sum” game in which only some countries benefit at the expense of others. In the UK, the consequences of voting for Brexit are not yet entirely clear, but free access to the European market that guaranteed membership of the European Union is no longer possible. Contemporaneously, there has been an active debate on the extent to which geopolitical tensions (such as the increasing tensions between Russia and the West) and technological change (automation, 3D-printing, etc) might work to reduce the level of trade integration across countries. What would be the economic consequences of the increase in protectionism and of technologically driven “de-globalization” around the world?

The purpose of this course is to review in an accessible and concise manner the causes and consequences of globalization and of (potential) “de-globalization” episodes. In the first lectures, the concept of “globalization” will be defined and an overview of the benefits and costs associated with trade integration will be offered. The course will highlight the role of firms, and of multinational firms more specifically, in shaping global production and consumption patterns. A few lectures will be devoted to the economics and politics of trade policy.