The course provides a deep understanding about the broad principles and theories, which govern the free flow of trade in goods, services and capital – both short term and long term – at the global level. Besides, preparing the students about the relevance and limitations of these principles, the contents of the paper spread over different units, lay stress on the theory and nature of the subject which, in turn, will greatly help them to examine the impact of the trade policies followed both at the national and international levels as also their welfare implications at macro level and the distribution of gains from trade to North and South. The major objective of the paper is to train the students about the various issues of trade and likely consequences on income, employment and social standards and possible policy solutions as the world will move into the 21st century.