This module explores key questions in the area of international trade. Should countries trade freely with each other? What are the gains/losses from free trade and are they distributed evenly within the population? What are the various trade agreements (e.g. NAFTA) and what do they try to accomplish? What are the various policies (e.g. tariffs, import quotas) which aim to restrict trade and what are their implications for the consumers and the producers? These questions will be answered by analysing, among others, various well-known trade models such as that of Ricardo and Heckscher-Ohlin.