International Economicscaptures the vitality of modern international trade and finance. A classic book by world-renowned authors, the Seventh Edition is comprehensively revised and updated in a new, full-color format. Each half of the book contains a core of theory chapters followed by chapters applying the theory to major policy questions of the past and present. Core theory chapters, followed by chapters that apply theory to major policy questions. Integrated treatment and empirical evidence of the latest models of trade, including the Gravity, Ricardian, specific factors, factor endowments, and imperfect competition models. Thorough discussion of the causes and effects of trade policy, focusing on the income-distribution effects of trade. Clear presentation of a unified model of open-economy macroeconomics based on an asset-market approach to exchange rate determination with a central role for expectations.
Table of Contents
1. Introduction. I. INTERNATIONAL TRADE THEORY. 2. World Trade: An Overview. 3. Labor Productivity and Comparative Advantage: The Ricardian Model. 4. Resources, Comparative Advantage, and Income Distribution. 5. The Standard Trade Model. 6. Economies of Scale, Imperfect Competition, and International Trade. 7. International Factor Movements. II. INTERNATIONAL TRADE POLICY. 8. The Instruments of Trade Policy. 9. The Political Economy of Trade Policy. 10. Trade Policy in Developing Countries. 11. Controversies in Trade Policy. III. EXCHANGE RATES AND OPEN-ECONOMY MACROECONOMICS. 12. National Income Accounting and the Balance of Payments. 13. Exchange Rates and the Foreign Exchange Market: An Asset Approach. 14. Money, Interest Rates, and Exchange Rates. 15. Price Levels and the Exchange Rate in the Long Run. 16. Output and the Exchange Rate in the Short Run. 17. Fixed Exchange Rates and Foreign Exchange Intervention. IV. INTERNATIONAL MACROECONOMIC POLICY. 18. The International Monetary System, 1870-1973. 19. Macroeconomic Policy and Coordination Under Floating Exchange Rates. 20. Optimum Currency Areas and The European Experience. 21. The Global Capital Market: Performance and Policy Problems. 22. Developing Countries: Growth, Crisis, and Reform. Mathematical Postscripts.