Political Economy

Week 3 Tutorial 1

News Report

Trade

Q&A

• What is the opportunity cost?
• What is the deadweight loss?
• What is the comparative advantage?
• What is New Trade Theory about?
  • competition
  • returns to scale
  • externalities
• More from Krugman on trade

Break

Policy advice

• You are a group of civil servants at a Ministry of Economy
• You have to draft a memo on trade policy and present the key points to the minister
  • Study your country (e.g. look here and here)
  • Support your arguments with theory and empirics
• Country split
  • Argentina
  • South Africa
  • Malaysia

Thank you and see you on Thursday!