International Trade by the Numbers: Comparative Advantage, Terms of Trade, Tariffs & Quotas
Show with real numbers who gains from trade, and who wins and loses when a tariff or quota is imposed, with every cell checked as you go.
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About this course
In this course you work for a fictional trade office and calculate international trade one checked formula at a time. You turn a two-country production table into opportunity costs and let IF decide absolute and comparative advantage. You measure the extra output from specialisation, find the feasible terms of trade with MIN and MAX and split the gains. You solve linear supply and demand at a world price for imports and exports, then price a tariff: consumer and producer surplus, tariff revenue and deadweight loss. You compare an import quota with its equivalent tariff and quota rent, check the current account against saving minus investment and build a trade-weighted exchange-rate index with SUMPRODUCT and a chart.
Lessons
- Opportunity Cost: Absolute vs Comparative Advantage Pro
- Production Possibilities & the Gains from Specialisation Pro
- Terms of Trade: The Feasible Range & Who Gets the Gains Pro
- A Small Open Economy at the World Price: Imports or Exports? Pro
- A Tariff in Numbers: Surplus, Revenue & Deadweight Loss Pro
- Import Quota vs Tariff: The Quota Rent and Who Keeps It Pro
- The Balance of Payments & the Savings–Investment Check Pro
- A Trade-Weighted Exchange-Rate Index & Competitiveness Pro