International trade has become more and more important, as transportation costs and artificial trade barriers keep falling over time. The world is more and more integrated through trade. Trade also plays a very important role in the development of many emerging economies, such as China. This course discusses the determinants of the pattern of international trade, why nations trade, what they trade, the gains from trade, and the distributional effects of trade. Then, we go on to analyze the motives, consequence and welfare implications of trade policies, and political economy of trade, such as free trade agreements, and the World Trade Organization.