Globalization is no longer a smooth process of market integration. Trade wars, geopolitical tensions, complex value chains, sustainability pressures, and institutional fragmentation are continuously reshaping the environment in which firms operate. Companies expanding internationally must understand not only market opportunities and competitive positioning, but also the economic and political dynamics that shape international business decisions. This course provides students with the analytical foundations and practical tools needed to understand international economic relations and their implications for business strategy. The course combines three complementary perspectives: the economic logic of international trade and investment; the managerial challenges of international expansion; and the political-institutional framework governing global and regional economic integration, with particular attention to trade policy and the European Union. Students will first develop a solid understanding of the main theories and empirical approaches in international economics, from classical trade theory to contemporary models of firm heterogeneity and gravity models. They will then apply these insights to managerial decisions such as market selection, entry modes, offshoring, foreign direct investment, competitiveness, and corporate responsibility in international contexts. Finally, the course examines the role of international institutions, monetary unions, trade policy, financial crises, and European integration in shaping the opportunities and constraints faced by firms and policymakers.

The overarching objective of the course is to enable students to connect economic theory, business strategy, and institutional analysis. • Explain the main trends, theories and empirical tools used to analyse international trade and; • Interpret how trade, FDI, offshoring, and global value chains shape firm strategy and economic outcomes; • Assess foreign market attractiveness by considering economic, competitive, institutional, and political factors; • Compare alternative international entry modes and evaluate their strategic risks and trade-offs; • Understand the role of international institutions, trade policies, financial crises, and monetary unions in shaping the global business environment; • Critically analyse the effects of international economic integration on firms, workers, inequality, development, and sustainability; • Develop evidence-based recommendations for policymakers in the current international landscape and managers considering international business expansion.

An understanding of economic and business processes, as well as of statistics or econometrics is an advantage, but is not a requirement.

Economic modules: • Trends in international trade • Absolute and comparative advantage • Heckscher-Ohlin theory and factor endowments • New Trade Theory: increasing returns, market structure, and Krugman models • New New Trade Theory: firm heterogeneity and the Melitz model • Gravity models and empirical approaches to international trade Management modules: • International entry modes: exporting, FDI, and offshoring • International market choice, country attractiveness, and competitiveness • International corporate responsibility Politics and institutions modules: • WTO, international institutions, tariffs, trade policy, and trade wars • International macroeconomics, finance, • Financial crises, • Monetary unions and EU integration Advanced topics in international trade • Trade, inequality, labour markets, growth, and development • Trade and the environment

Throughout the semester, a high level of participation is solicited from the students, who will work on a set of group projects that are presented and discussed in class. Case studies and practical examples are frequently discussed during the lectures in parallel to the theory, thus students are expected to participate in applied learning activities during the classroom. Flipped learning approach is also occasionally adopted (for instance students may be required to scout the industry's internationalization practices before looking at specific company case studies) and it can be required to read case studies material ahead of in-class discussion.

Suggested textbooks: Paul Krugman, Maurice Obstfeld & Marc Melitz, International Economics: Theory and Policy, Pearson. Further reading materials will be provided on the online portal

Slides;

Modalita di esame: Prova scritta in aula tramite PC con l'utilizzo della piattaforma di ateneo;

Exam: Computer-based written test in class using POLITO platform;

... At the end of the year, one hour written exam in class with PC, using the university's platform. The exam consists of 12 multiple choice questions. Each correct answer provides 2 points, each wrong answer provides a -0.5 penalty. No textbooks or manuals allowed. Groupwork[CR1.1]: Students can earn up to points from participating in groupwork activities: a minority of points is awarded for groupwork participation, while the majority of points is awarded to reward quality of groupwork. Participation in groupwork is voluntary. Students who wish to participate in groupworks, however, are required to attend all groupwork sessions in class. Any grade greater than 30 corresponds to "30 e lode". The grading criteria are based on the expected learning outcomes, both at a theoretical level (exam) and applied practically in the groupwork. The written exam will ascertain the understanding of the main material covered in class. The groupwork will evaluate the student's capacity to connect business opportunities, macro-economic and political challenges, and critical issues identified in the literature and in data collection processes, together with the ability to combine these concepts with soft skills (teamwork, presentation and report writing skills, creativity, etc.).

Gli studenti e le studentesse con disabilita o con Disturbi Specifici di Apprendimento (DSA), oltre alla segnalazione tramite procedura informatizzata, sono invitati a comunicare anche direttamente al/la docente titolare dell'insegnamento, con un preavviso non inferiore ad una settimana dall'avvio della sessione d'esame, gli strumenti compensativi concordati con l'Unita Special Needs, al fine di permettere al/la docente la declinazione piu idonea in riferimento alla specifica tipologia di esame.