International trade has become a pivotal issue as national economies have grown increasingly open to the exchange of imports and exports. However, the structure and functioning of global trade cannot be fully explained by markets and economic forces alone. Both international markets and the policies implemented by nation-states must be considered to understand how global trade operates. This raises key questions: What drives the trade policy choices of nation-states? Can theoretical frameworks shed light on the nature of international trade relations?
Economic research in international trade often focuses on three core areas: the composition and direction of trade flows, trade barriers, and the welfare effects of trade at both national and international levels. Meanwhile, political scientists examine how domestic preferences for protectionism or free trade are shaped, the influence of domestic political institutions on trade policy, the impact of international factors on policy decisions, and how trade itself reshapes states and the global political system. To understand the functioning and evolution of global trade, it is essential to integrate both political and economic analyses.
This course investigates the political and economic factors that shape international trade policy choices, emphasizing their international dimensions. It highlights that such choices are influenced not only by the efficiency and mutual benefits of economic exchanges or domestic preferences and institutions but also by the distribution of gains among states and other international actors.
Special attention will be given to the role of international institutions and regimes, such as the WTO and preferential trade agreements, in shaping trade policies. The course will examine how these institutions affect trade in both developed and developing countries, particularly focusing on how multinational corporations and powerful states leverage their influence. Additionally, the course explores the political purposes, rivalries, and cooperation between states, which establish the framework within which market forces operate and create the rules that market actors must follow. Conversely, it also investigates how market dynamics shape state policies and the political relations between states.
- Teacher: Enika Abazi