International Food and Agricultural Trade (4902 – 420)
Module Coordinator and Lecturer:
Dr. Kirsten Urban
International Agricultural Trade and Food Security (490b)
e-mail: [email protected]
phone: 0711/459-22600
Wollgrasweg 43, room 2.28
Instructors:
Tutor and supervisor group work:
M.Sc. Ryan Gorman
International Agricultural Trade and Food Security
e-mail: [email protected]
phone: 0711/459-22784
Wollgrasweg 43, room 2.25
M.Sc. Vladimir Korovin
International Agricultural Trade and Food Security
e-mail: [email protected]
phone: 0711/459-22602
Wollgrasweg 43, room 2.27
Time and location:
Lectures:
 Wednesday, 10:15 a.m. – 11:45 a.m., HS 6, Schloss, Osthof Ost (0433),
April 5 – July 12, 2017
 Thursday, 10:15 a.m. – 11:45 a.m., Seminar room Lebensmittelchemie, Garbenstr.28,
Ökozentrum, 2. UG, https://www.uni-hohenheim.de/organisation/raum/seminarraumlebensmittelchemie
April 6 – July 13, 2017
Additional tutorial:
 Wednesday, 12:00 p.m. – 2:00 p.m., HS 20, Garbenstraße,
April 19 – July 12, 2017 (every 2 weeks)
Content:
Aim of this module is to introduce students into economic theory of international trade. Students
will become acquainted with the theoretical concepts and understand why countries trade with each
other. They will be able to use this framework for analyzing patterns of trade and addressing policyoriented questions in the agricultural and food sectors. After successfully attending this module,
students are expected to be able to comprehend details of current trade negotiations, including new
topics on the trade agenda, and to be familiar with the analytical tools to assess the wider
implications of international trade and trade policy reforms for different groups of countries and
population segments.
Basic knowledge required for this module:
Students must have a solid background in microeconomics and some macroeconomics is required
as well. Successfully completed courses in both of these subjects at the undergraduate level are
essential and assumed. If these requirements are not met, any undergraduate textbook in
microeconomics can be consulted as a preparation for this module and / or the participation in the
module “Economics and Environmental Policy” (4201-440) is recommended.
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Relation to other modules:
This module builds on introductory economics lectures such as “Principles of Micro- and
Macroeconomics” (4201-021, 4202-022) and “Economic and Environmental Policy” (4201-440).
The modules “International Food and Agricultural Trade” (4902-420) and “Agricultural and Food
Policy” (4201-410) are complement to each other. In addition, the module “Microeconomics”
(4202-451) supports the understanding of international trade theory. This module (4902-420)
teaches knowledge that is the basis for more advanced agricultural policy modeling such as
introduced in the module “Advanced Policy Analysis Modeling” (4201-420).
Lecture:
The lecture consists of different elements. The concepts of international economic theory are
introduced using a mixture of teacher-centered teaching and interactive exercises. The exercises
give students the opportunity to become acquainted with and deepen the understanding of those
concepts, and practice their application to policy-oriented questions. These exercises are mainly
individual or partner work and will be discussed in the plenum based on students’ presentations.
Besides, students train to read scientific articles and summarize the main findings in small groups.
In addition, students learn how to use data bases relevant for international economic and trade
analysis and practice how to extract and process such data. These skills are relevant for the group
work, in which students analyze country specific trade policies, countries’ integration into
international trade and the involvement in bilateral and/ or multilateral trade negotiations/
agreements. The case study projects are conducted in small groups. Each group elaborates specific
task, writes a paper and prepares presentations, so that the module finalizes with a comparison and
discussion of topics currently on the international trade agenda covering country-specific aspects.
Homework and regular quizzes:
Frequently, homework exercises and assignments are integrated into the module. The homework’s
aim is to repeat important concepts introduced and discussed in the lecture and to elaborate and
assess exercises related to the lecture material. Regular quizzes give the students the opportunity to
check their acquainted knowledge.
Tutorial:
The tutorial gives students the opportunity to discuss additional exercises in which they practice the
application of concepts, models and trade policy analyses. Furthermore, this tutorial aims at
supporting students who do not meet all prerequisites of the module by answering questions
regarding economic concepts that are presumed.
Teaching objectives:
After successfully completing this module students should have achieved the following professional
expertise:
Students…
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explain, differentiate between and qualify the key concepts of the theory of international
economics with focus on international trade theory, including e.g., comparative advantage,
specific factors, gains from trade, intra and inter industry trade, increasing returns to scale,
product differentiation and strategic trade policy.
apply core models of international trade to determine the patterns of trade, interpret the
effect on economic factors and generalize the results and thus understand standard theorems
using graphical representations and/ or equation systems.
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discuss and reason why countries engage in international trade of goods and services with
each other and comment on actual trade pattern.
describe and classify the effects of trade policy instruments and apply methods to assess and
evaluate their effect on a number of economic factors.
exemplify linkages of international trade with macroeconomic theory using key concepts of
international economics
characterize the development of international trade negotiations, multilateral and regional
trade agreements and explain their contribution to the development of world trade and to
trade liberalization.
discuss and evaluate topics currently on the trade agenda.
Additionally students acquire the following key competencies:
Students…
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read scientific articles and extract information of interest (scientific reading)
use online databases to extract data, process and select data and prepare figures and tables to
illustrate information (database use, data processing)
analyze and interpret data, present the outcome and derive conclusions (data analysis,
presentation; analytical thinking, sound economic reasoning)
organize group work, develop a strategy/ an approach, allocate specific tasks, summarize
key outcome and update group members, discuss, classify and evaluate findings, keep to due
dates (group work, analytical thinking, sound economic reasoning)
select important information, prepare presentation focusing on main outcome/ interesting
aspects
communicate precise information/ main discussion or analysis results in the plenum or
within groups (oral presentation techniques, communication of main analysis results)
Examination:
The module examination is based on:
1. written exam (120 min)
2. written assignments/ tests
3. group work including written paper and presentation
(80%)
(10%)
(10%)
A pass grade is required for each of the three parts separately to pass the module. All material
covered in the module is relevant.
Exam dates, time and location will be announced in class as soon as they are provided by the
examination office.
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Course outline:
Lectures:
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3.
4.
5.
6.
7.
8.
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10.
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15.
Introduction: World Trade - an Overview
Labor Productivity and Comparative Advantage: The Ricardian Model
Specific Factors and Income Distribution
Resources and Trade: The Heckscher –Ohlin Model
The Standard Trade Model
Economies of Scale and Imperfect Competition
Firms in the global economy
The Instruments of Trade Policy
The Political Economy of Trade Policy
Multilateral trade negotiations vs. regional trade agreements
Theory of Regional Trade Agreements
Trade Policy in Developing Countries
National Income Accounting and the Balance of Payments
Exchange Rates and the Foreign Exchange Market: An Asset Approach
Money, Interest Rates, and Exchange Rates
Module material and communication:
Lecture slides, exercises, group work instructions, and additional material will be available via
ILIAS - https://ilias.uni-hohenheim.de
Registration April 05, 2017, password will be provided in the 1. lecture
Literature:
Main textbook of this module:
Krugman, P., Obstfeld, M. and M. J. Melitz, (2015), International Economics. Theory and
Policy. 10th Edition Pearson Publisher (and back editions)
Additional reading material:
International Economics:
Feenstra, R.C. and Taylor, A.M. (2011). International Economics. Worth Palgrave Macmillian.
International Edition. Second Edition. New York.
Mathematical Economics:
Chiang, A.C. and Wainwright, K. (2005), Fundamental Methods of Mathematical Economics, 4th
Edition, McGraw-Hill, New York.
Microeconomics:
Snyder, C. and Nicholson, W. (2007), Microeconomic Theory, Basic Principles and Extension. 7th
Edition, Cengage Learning.
GTAP:
Brockmeier, M. (2001), A Graphical Exposition of the GTAP Model. GTAP Technical Paper No.
08. available at https://www.gtap.agecon.purdue.edu/resources/tech_papers.asp
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