This student-friendly text emphasizes how to use basic economic theory and where to apply it to international economic issues. The first half of the book covers international trade, factor movements, and trade and economic development; the final ten chapters on international finance can be divided into at least three parts: national income accounting and exchange rate determination; purchasing power parity and the real exchange rate; and open economy macroeconomics. The text empowers students to understand the international economics they will encounter in business publications such as the Wall Street Journal, and to use international economics to make business decisions.; A clear description of the world economy-Features a more extensive presentation of international economic data-than usually found in other texts.; Factor movements. Explains what drives labour and capital movements, and relates them to the traditional explanations of international trade.; A complete chapter on intraindustry trade.; Exclusive use of the Mundell-Fleming Model.
Offers students a complete explanation of open economy macroeconomics using supply/demand analysis in international trade and aggregate demand/aggregate supply analysis in international finance.; A public choice approach to the existence of trade barriers.; Margin definitions provide a quick way for students to recognize the terms that are important to know; Quick reviews of economic principles-At key points in the text.; Boxed material-Adds to numerous applications of international economics liberally distributed throughout the text; Chapter-end questions.
Table of Contents
1. Introduction: An Overview of the World Economy. 2. Why Countries Trade. 3. Factor Endowments and the Commodity Composition of Trade. 4. Intraindustry Trade. 5. International Factor Movements. 6. Tariffs. 7. Nontariff Distortions to Trade. 8. International Trade Policy. 9. Regional Economic Agreements. 10. International Trade and Economic Growth. 11. National Income Accounting and the Balance of Payments. 12. International Transactions and Financial Markets. 13. Exchange Rates and Their Determination: A Basic Model. 14. Money, Interest Rates, and the Exchange Rate. 15. Price Levels and the Exchange Rate in the Long Run. 16. Output and the Exchange Rate in the Short Run. 17. Macroeconomic Policy and Floating Exchange Rates. 18. Fixed Exchange Rates and Currency Unions. 19. International Monetary Arrangements. 20. Capital Flows and the Developing Countries.