This module follows on from International Trade Theory, using the theoretical models covered as the basis for further policy analysis. While the focus is mainly on understanding the theory underlying policy choices, examples are used to illustrate the ideas. It begins by examining global and regional moves towards free trade, and how these interact with each other. This is followed by sections on strategic trade policy, which analyses trade policy under oligopoly, and political economy, with analysis of both median voter and lobbying models. There follows an analysis of the motivation for foreign direct investment (FDI), focusing on the choice between FDI and exporting and the impact of trade policy on this choice. The final section considers the effects of technological change on trade and of trade on growth.