UCL Department of Economics


ECON3004 - International Trade

Term 2


To provide students who have completed the second-year core module in microeconomics ECON2001 with a framework for understanding modern ideas in the theory of international trade; to use this framework to analyse the major policy issues of world trade.


By the end of the module, students should:

  • Understand the key concepts of the theory of international trade, including comparative advantage, factor-based trade, gains from trade, intra-industry trade and strategic trade policy.
  • Be familiar with leading examples of recent empirical work on the pattern of trade, the impact of globalisation on labour earnings and the effects of tariffs, quotas and preferential trade agreements.
  • Be able to summarise ideas presented in the module in a clear and non-technical way.
Taught by:
Assessment: 20 hours of lectures and 4 compulsory tutorial classes. Coursework consists of 4 problem sets, one for each class, which typically include some exercises and/or short written assignments. Students are required to submit coursework for 3 out of 4 classes. There will be an unseen 2-hour written examination in Term 3.
Suitable for:
3rd year Economics (L100), Econ/Geog (LL17), Econ/Stats (LG13) and Phil/Econ (VL51) students.
Prerequisites: Students should have a good understanding of microeconomics and welfare economics at the level of ECON2001: Microeconomics.
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