SHEB751 International Trade and Global Markets


The students will get acquainted with the basic principles, concepts and terminology in international trade theory and analysis.

The unit examines the main theories of international trade, the stages and tools of protectionism and trade regulation. Specific attention is paid to the tariff and non-tariff trade barriers and their effect on well-being and economic performance. Students will get acquainted also with the multilateral and regional approaches to trade liberalization, the role and influence of multinational corporations on world trade. The place of the EU in global trade, as well as the nominal and real convergence of the economies of Central and Eastern Europe to the EU level, are discussed.

The course aims at:

- Building comprehensive knowledge of the main processes and trends in the development of modern international trade and commodity exchange.

- Enhancing skills and abilities for identification and analysis of the defining trends in the modern global economy and of their impact on the European economy and its international competitiveness.

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Business Studies (Joint programme with The University of York)


Asst. Prof. Elena Spasova, PhD
Assoc. Prof. Eduard Marinov, PhD

Course Description:


Students who complete this course:

1) will know:

• the state, trends and theoretical background in the development of international trade;

• the characteristics of the current, third wave in the globalization of the world economy and their impact on the evolution of international trade and monetary-financial relations;

• the content and purpose of the various instruments of foreign trade policy and their impact on the business environment and the corporate behaviour.

2) will be able to:

• quickly navigate the complex issues of international business and to come up with effective solutions at macroeconomic and corporate levels;

• to adequately interpret the state, trends and prospects for enhancing Bulgaria's international competitiveness in the European and global markets.

Students are required to have the following knowledge and/or skills:

• Microeconomics

• Macroeconomics

• International political economy

Full-time Programmes

Types of Courses:

Language of teaching:


  1. Introduction to international trade - International trade simulation.
  2. Theories of international trade – Part I. Subject, content, evolution. The mercantilists’ views. Theories of absolute and comparative advantage. The Heckscher – Ohlin theory on different factor endowments. New (alternative) theories. "Terms of trade" as a measure of the effectiveness of foreign trade.
  3. Theories of international trade – Part II. New (alternative) theories. "Terms of trade" as a measure of the effectiveness of foreign trade.
  4. The instruments of trade policy - Part I. Tariffs: types of tariffs; nominal and effective rate of protection; tariff escalation. Costs and benefits of a tariff: static and dynamic effects in a small economy model and in a large economy model. Tariff effects on exporters.
  5. The instruments of trade policy – Part II. Non-tariff trade restrictions and their application in the world economy. Import quotas - static effects. Comparison of protectionist effects of tariffs and quotas. Voluntary export restraints - nature, effects, features, significance. Local content requirements and government procurement policies. Domestic and export subsidies and their impact on the national economy and international trade. International dumping - definition, types, preconditions. Anti-dumping regulation.
  6. Multilateral approach in global trade liberalization. General Agreement on Tariffs and Trade and World Trade Organization – establishment and operations. The rounds of WTO negotiations
  7. Trade policy of developing countries. The developing countries in global trade. Growth strategies.
  8. Regional approach to the liberalization of world trade. Preferential trade agreements - free trade area, customs union, single market, economic and monetary union. Static and dynamic effects of the customs union. Major stages in the development of economic integration within the European Union. Bulgaria's membership to the EU - foreign economic the trade aspects.
  9. International movement of factors of production. Multinational corporations - definition, structure, types. MNCs as a source of foreign direct investment and their role in the modern world economy. International Joint Ventures.
  10. Current and structural changes in world economy. Main processes and trends in the development of modern world trade.


• Appleyard, D. and A. Field, Jr. 2017. International economics — 9th ed. McGraw-Hill.

• Krugman, P. Obstfeld, M. and M. Melits. 2022. International Economics – Theory and Policies. 12th Edition. Pearson. ISBN-13: 978-1292214870

• Salvatore, D. 2019. International Economics – 13th edition. John Wiley & Sons. ISBN 978-1-118-17793-8.

• Carbaugh, R., International Economics, 17th Edition, Cengage Learning, 2019.

• Dunn, R., Mutti, J. International economics. 6th Edition. Routledge 2004.

• Papers in specialized economic journals.

• Webpages of national and international institutions