The topics covered by this course are at the very heart of today's economic and political events. We aim at providing sound and specific tools for the analysis of international economics and explore the most up to date evidence on and interpretation of the current and most relevant phenomena of the international real economy. Beyond these general goals we aim at presenting and analysing in a critical manner the position of our country, Italy, in the rapidly changing world economy. The course focuses on the determinants and consequences of integration of good and factor markets. We will dissect three main core issues: 1) the main explanations for observed trade flows between countries and, from countries' trade patterns, we will move to highlight the role of firms in the international markets; 2) within the general issue on the role of firms in trade, we will focus on how small firms and small firms' clusters - namely industrial districts - cope with the increasing pressure of globalisation; 3) finally, we will explain the emergence and intensification of migration waves and will highlight the main aspects of EU migration policies. The main value added of the course is having instructors whose research field overlaps with the topics that they will cover.