ERIC Number: EJ1331657
Record Type: Journal
Publication Date: 2022
Pages: 12
Abstractor: As Provided
ISBN: N/A
ISSN: ISSN-0022-0485
EISSN: N/A
International Trade with Heterogeneous Firms: An Interactive Classroom Simulation
Cook, Nathaniel P. S.; Pantuosco, Angie
Journal of Economic Education, v53 n1 p31-42 2022
In this article, the authors describe an interactive classroom simulation that helps students learn some of the most important ideas from models of international trade with heterogeneous firms. Students make entry/exit decisions for individual firms with different marginal costs of production. The simulation consists of five rounds, beginning with autarky and progressively liberalizing trade. In each round, students interactively determine each firm's equilibrium entry/exit decision by responding in real time to how their individual firm's profit is affected by the decisions of all of the other firms. Empirical evidence from a pre-post assessment of students who participated in the simulation in the fall of 2019 demonstrates a significant increase in student understanding of international trade with heterogeneous firms after participating in the simulation.
Descriptors: Economics Education, International Trade, Simulation, Class Activities, Undergraduate Students, College Instruction, Instructional Effectiveness
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Publication Type: Journal Articles; Reports - Descriptive; Tests/Questionnaires
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A