The book is informed by current events and by the latest in applied international research. It combines rigorous economic analysis with attention to the issues of economic policy that are alive and important today. This concise and readable text uses economic terminology when it enhances the analysis, but avoids jargon for jargon’s sake. Like earlier editions, it also places international economics events within a historical framework. The overall treatment continues to be intuitive rather than mathematical and is strongly oriented towards policy.
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Part I: The Theory of International Trade
2. The Basic Theory Using Demand and Supply
3. Why Everybody Trades: Comparative Advantage and Factor Proportions
4. Who Gains and Who Loses from Trade?
5. Alternative Theories of Trade
6. Growth and Trade
Part II: Trade Policy
7. The Basic Analysis of Tariffs
8. Nontariff Barriers to Imports
9. Arguments For and Against Protection
10. Pushing Exports
11. Trade Blocs and Trade Blocks
12. Trade and the Environment
13. Trade Policies for Developing and Transition Countries
14. Multinationals and Migration: International Factor Movements
Part III: Understanding Foreign Exchange
15: Payments Among Nations
16. The Foreign Exchange Market
17. Forward Exchange and International Financial Investment
18. What Determines Exchange Rates
19. Government Policies Toward the Foreign Exchange Market
20. International Lending and Financial Crises
Part IV: Macro Policies for Open Economies
21. How Does the Open Macroeconomy Work?
22. Internal and External Balance with Fixed Exchange Rates
23. Floating Exchange Rates and Internal Balance
24. National and Global Choices: Floating Rates and the Alternatives
Appendix A: Where the International Information Is
Appendix B: Deriving Production-Possibilities Curves
Appendix C: Offer Curves
Appendix D: The Nationally Optimal Tariff
Appendix E: Many Parities at Once
Appendix F: Aggregate Demand and Aggregate Supply in the Open Economy
Appendix G: Devaluation and the Current Account
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