International Trade
BA Course
UCL, SSEES
Lecture 1: Overview of the World Trade and The Gravity
Model
Idil Uz Akdogan
,Fundamentals
• Causes: It analyses why countries sell much of what they
produce to other countries and why they purchase much
what they consume from other countries.
• Implications: the benefits and costs of international trad
including macro, micro and political considerations.
• Policy-making: the motivations for and effects of
government policies that restrict or encourage trade (spe
interest groups or national welfare?).
• Methodology: we will study these topics through differe
analytical frameworks that help systematise complex
dynamics, so models.
, Why is it interesting to study trade?
• Nations are now more closely linked than ever before.
• Exports and imports as shares of gross domestic prod
have been on a long-term upward trend for many
developed countries.
– International trade has roughly tripled in importance compare
the economy as a whole in the past 50 years.
– Both imports and exports fell in 2009 due to the recession.
• Trade policies will have an important impact.
BA Course
UCL, SSEES
Lecture 1: Overview of the World Trade and The Gravity
Model
Idil Uz Akdogan
,Fundamentals
• Causes: It analyses why countries sell much of what they
produce to other countries and why they purchase much
what they consume from other countries.
• Implications: the benefits and costs of international trad
including macro, micro and political considerations.
• Policy-making: the motivations for and effects of
government policies that restrict or encourage trade (spe
interest groups or national welfare?).
• Methodology: we will study these topics through differe
analytical frameworks that help systematise complex
dynamics, so models.
, Why is it interesting to study trade?
• Nations are now more closely linked than ever before.
• Exports and imports as shares of gross domestic prod
have been on a long-term upward trend for many
developed countries.
– International trade has roughly tripled in importance compare
the economy as a whole in the past 50 years.
– Both imports and exports fell in 2009 due to the recession.
• Trade policies will have an important impact.
