Econ 2203: International Trade and Policy in Agriculture
Econ 2203 · Undergraduate Course · 2026
International Trade and Policy in Agriculture
A rigorous introduction to trade theory, open-economy macroeconomics,
and agricultural trade institutions, with Indian data throughout.
Course Code
Econ 2203
Lecture Format
Interactive Slides (RevealJS) with R figures
Primary Textbook
Salvatore: International Economics (2013)
Secondary Textbook
Appleyard & Field: International Economics
About This Course
This course provides a systematic treatment of international trade theory and policy, with particular emphasis on India’s agricultural trade. We begin with the classical foundations of Mercantilism, Absolute Advantage, and Comparative Advantage, and progress through modern trade theory (Heckscher–Ohlin, Stolper–Samuelson, Rybczynski), trade policy instruments (tariffs, quotas, subsidies, dumping), and open-economy macroeconomics (Balance of Payments, Foreign Exchange, Mundell–Fleming).
The second half of the course focuses on international institutions: the WTO, the Agreement on Agriculture, SPS/TBT measures, and India’s own export infrastructure (APEDA, MPEDA, DGFT). All lectures use recent Indian trade data and are illustrated with R/ggplot2 figures.
Lecture Schedule
| # | Date | Lecture Title | Slides |
|---|---|---|---|
| 1 | Apr 25, 2026 | Introduction to International Trade | HTML PDF |
| 2 | May 2, 2026 | Features of International Trade | HTML PDF |
| 3 | May 9, 2026 | Classical Theories: Mercantilism to Smith | HTML PDF |
| 4 | May 16, 2026 | Comparative Advantage: Ricardo & Opportunity Cost | HTML PDF |
| 5 | May 23, 2026 | Modern Trade Theory: Heckscher–Ohlin & Lewis | HTML PDF |
| 6 | May 30, 2026 | Terms of Trade, Free Trade & FTAs | HTML PDF |
| 7 | Jun 6, 2026 | Protectionism I: Tariffs & Quotas | HTML PDF |
| 8 | Jun 13, 2026 | Protectionism II: Subsidies, Dumping & Cartels | HTML PDF |
| 9 | Jun 20, 2026 | Balance of Trade & Balance of Payments | HTML PDF |
| 10 | Jun 27, 2026 | India's External Sector: Trade and Reserves | HTML PDF |
| 11 | Jul 4, 2026 | Foreign Exchange: Rates and Determination | HTML PDF |
| 12 | Jul 11, 2026 | Forex Market: Instruments and Policy | HTML PDF |
| 13 | Jul 18, 2026 | WTO: Origin, Structure and Functions | HTML PDF |
| 14 | Jul 25, 2026 | Agreement on Agriculture | HTML PDF |
| 15 | Aug 1, 2026 | SPS Measures and Codex Alimentarius | HTML PDF |
| 16 | Aug 8, 2026 | Export Procedures and Documentation | HTML PDF |
| 17 | Aug 15, 2026 ⁺ | Agricultural Export Promotion Organizations | HTML PDF |
| 18 | Aug 22, 2026 | India's Agricultural Trade & Foreign Trade Policy | HTML PDF |
⁺ August 15 is Independence Day; class may be rescheduled. Confirm with the department.
Textbooks
International Economics, 11th Edition
Wiley, 2013 · Primary text
Key chapters: 2–5 (Trade Theory), 8–9 (Policy), 13–15 (BoP/Forex)
International Economics, 8th Edition
McGraw-Hill · Secondary text
Key chapters: 14 (Tariff welfare), 17–21 (BoP/Forex)
India Trade Data & Policy Documents
Current, used in all 18 lectures
FY2024 agricultural trade statistics, BoP data, FTP 2023–28
Classic Papers
A curated list of seminal works in international trade theory and policy.
Trade Theory Foundations
On the Principles of Political Economy and Taxation, Ch. 7 Origin of comparative advantage
"The Effect of Foreign Trade on the Distribution of Income" Ekonomisk Tidskrift — foundational factor-proportions paper
"Protection and Real Wages" Review of Economic Studies 9(1)
"International Trade and the Equalisation of Factor Prices" Economic Journal 58(230) — factor price equalization
"Domestic Production and Foreign Trade: The American Capital Position Re-Examined" Proc. American Philosophical Society 97(4) — the Leontief Paradox
"Factor Endowment and Relative Commodity Prices" Economica 22(88)
"Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods" AER 67(5)
"Scale Economies, Product Differentiation, and the Pattern of Trade" AER 70(5) — New Trade Theory
"The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity" Econometrica 71(6) — firm heterogeneity
Empirical Tests
"British and American Exports: A Study Suggested by the Theory of Comparative Costs" Economic Journal 61(244) — first Ricardian test
"An Empirical Demonstration of Classical Comparative Cost Theory" Review of Economics and Statistics 45(3)
"Does Trade Cause Growth?" AER 89(3) — IV strategy using geography
"Do We Really Know That the WTO Increases Trade?" AER 94(1) — gravity model and WTO
Trade Policy
"Immiserizing Growth: A Geometrical Note" Review of Economic Studies 25(3)
"The Structure of a Tariff System and the Effective Protective Rate" Journal of Political Economy 74(3)
"Export Subsidies and International Market Share Rivalry" Journal of International Economics 18(1) — strategic trade policy
"Is Free Trade Passe?" Journal of Economic Perspectives 1(2)
"An Economic Theory of GATT" AER 89(1) — why countries negotiate trade deals
"The Distribution of Gains between Investing and Borrowing Countries" AER 40(2) — Prebisch-Singer hypothesis
Open-Economy Macroeconomics
"Capital Mobility and Stabilization Policy Under Fixed and Flexible Exchange Rates" Canadian Journal of Economics 29(4)
"Domestic Financial Policies Under Fixed and Under Floating Exchange Rates" IMF Staff Papers 9(3)
"Expectations and Exchange Rate Dynamics" Journal of Political Economy 84(6) — overshooting model
"Empirical Exchange Rate Models of the Seventies" Journal of International Economics 14(1) — random walk benchmark
Indian Trade & Agricultural Policy
"India's Trade Reform" India Policy Forum 1(1) — comprehensive overview of liberalisation
"Subsidy Syndrome in Indian Agriculture" Economic and Political Weekly 38(27)
"Food Safety Regulation: An Overview of Contemporary Issues" Food Policy 24(6) — SPS and trade
"Saving Two in a Billion: Quantifying the Trade Effect of European Food Safety Standards" Food Policy 26(5)
Full per-lecture reading lists are on the Readings page.