General Information
Promotional Video
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Instructor Bio
Daniel Trefler is the Chair in Competitiveness and Prosperity at the Rotman School of Management. His research has been instrumental in the design and pursuit of trade agreements that promote productivity, innovation and investment while minimizing the harmful effects on workers and the most disadvantaged. In recent years, he helped frame the economic document that launched the Canada-EU trade agreement (CETA), participated heavily in the NAFTA discourse, and is currently working with Global Affairs Canada and the WTO on developing a new legal framework to deal with China’s increased prominence in the global economy. Trefler is also advising the OECD and the WTO on the international harmonization of AI regulations. The importance and influence of Professor Trefler’s work has been recognized through numerous distinctions including all three major awards of the Canadian Economics Association, a Canada Research Chair, the 2016 Bank of Canada Fellowship Award, and the 2016 Killam Prize in Social Sciences (Canada’s ‘Nobel Prize’).
Target Audience
This course is designed for those interested in international trade issues, including those with a general interest perspective, a policy perspective, and a business perspective.
Format
May 5-15, 2025 (8 classes, final exam on May 15), lectures every day for much of 6:00-9:00 pm.
Course Mission
This course will cover the principles of international economics by exploring the big business, legal and policy issues of the new Era of De-globalization. Ever wonder why is China so successful? Do we need a Canadian industrial policy? Did Trump make America great again (or are we waiting for his second term)? Was USMCA a good deal for Canada and how should we respond to Trump’s latest threats? Can new industrial policies bring back supply chains from East Asia? What is AI, how will AI affect trade, and should it be regulated? What should your business focus on as it enters China or rushes to protect itself from Chinese competitors? This class will provide empirical context and economic tools to help students answer these questions for themselves.
Course Scope
The course kicks off with an in-depth look at doing business in China. We then develop a rich framework for thinking about how innovation builds core competencies that enhance a business’s international competitiveness. We also examine global value chains, which determine a business’s choice of where to develop products and explains “clusters” of industry-specific capabilities. With this framework in place, we draw out key business implications. We also use the framework to address the broader questions raised above in the “Course Mission”. At least one lecture will be devoted to international trade law and how it can be used by your business. We conclude with a simple model to understand how hedging in international financial markets affects exchange rates and inflation.
Class discussion is central. Also, there is a group project in which you will pick a company that is faltering in the face of Chinese competition, and you will develop a strategic plan forward.
Evaluation and Grade Breakdown
| Component | Due Date | Weight |
|---|---|---|
| First Test | First Wednesday of class | 15% |
| Second Test | Second Monday of class | 15% |
| Final Exam | Second Thursday of class – May 15 | 40% |
| Group Report | During exam period | 30% |
Required Resources
The course will be based on a course package largely designed by the instructor.