International Trade and Financial Market

This half-course examines the intersection of international trade and financial markets, exploring how global commerce both shapes and is shaped by macroeconomic policy, financial conditions, and firm-level strategic behavior. The course aims to bridge two traditionally distinct analytical lenses — international macroeconomics and micro-level trade and corporate dynamics — to provide students with an integrated understanding of how trade policies, capital flows, and multinational production networks interact in a financially interconnected world.

The first half of the course (Macro) focuses on the policy dimensions of international trade. It investigates how trade policies influence growth, inflation, and monetary policy in advanced economies, and how these same dynamics play out in emerging markets with more volatile macro-financial linkages. Students will analyze theoretical frameworks for tariffs and trade balances alongside empirical evidence from historical and contemporary policy shifts. Case studies will explore the commodity–currency nexus, crisis transmission through trade channels, and how financial markets price trade risk.

The second half (Micro) transitions to the firm and industry level, examining global supply chains and multinational corporations. The discussions will explore how geopolitical tensions, industrial policies, and technological change are reshaping global production networks. Students will assess the evolving role of multinational enterprises as both transmitters and mitigators of global shocks. Case studies will focus on critical materials and the technology sector, highlighting the strategic and policy implications of concentrated global value chains.