ECON 421 - International Trade and Multinational Corporations

Multinational corporations are a primary driver of the rapid globalization of the world economy that we have witnessed in the past couple of decades. This course is comprised of two primary elements: 1) a theoretical component that introduces the more advanced theories of international trade and foreign direct investment (FDI) and 2) an applied component that discusses the role of multinational corporations and exporters in shaping globalization. The theories developed in this class expose students to the current paradigm in the international trade and FDI literatures focused on heterogeneous firm-level analysis. These derivations provide a sound platform from which to evaluate the causes and consequences of international trade and FDI and provide a natural transition for contemplating the role of exporting firms and multinational corporations in shaping globalization. Throughout this applied component of the course, we will examine issues, such as the role of productivity and diversity in entering foreign markets, the labor market effects in home and host countries, the correlation with economic development and inequality, convergence or polarization of global cultures, and issues related to international trade policy and transportation. This course counts as a Group E elective. It is a capstone course. Prerequisite(s): ECON 361, ECON 371 and ECON 381, all earned with a minimum grade of C-. Every year. (4 Credits)