BOOK
International Trade: Theory and Policy, Global Edition
Paul R. Krugman | Maurice Obstfeld | Marc Melitz
(2017)
Additional Information
Book Details
Abstract
For courses in International Trade.
A balanced approach to theory and policy applications
International Trade: Theory and Policy provides engaging, balanced coverage of the key concepts and practical applications of the discipline. An intuitive introduction to trade theory is followed by detailed coverage of policy applications. With this new 11th Edition, the author team of Nobel Prize-winning economist Paul Krugman, renowned researcher Maurice Obstfeld, and Marc Melitz of Harvard University continues to set the standard for International Economics courses.
Pearson MyLabTM Economics not included. Students, if MyLab is a recommended/mandatory component of the course, please ask your instructor for the correct ISBN and course ID. MyLab should only be purchased when required by an instructor. Instructors, contact your Pearson rep for more information.
MyLab is an online homework, tutorial, and assessment product designed to personalize learning and improve results. With a wide range of interactive, engaging, and assignable activities, students are encouraged to actively learn and retain tough course concepts.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Cover | Cover | ||
| Title Page | 3 | ||
| Copyright Page | 4 | ||
| Brief Contents | 5 | ||
| Contents | 7 | ||
| Preface | 13 | ||
| 1 Introduction | 23 | ||
| What Is International Economics About? | 25 | ||
| The Gains from Trade | 26 | ||
| The Pattern of Trade | 27 | ||
| How Much Trade? | 27 | ||
| Balance of Payments | 28 | ||
| Exchange Rate Determination | 29 | ||
| International Policy Coordination | 29 | ||
| The International Capital Market | 30 | ||
| International Economics: Trade and Money | 31 | ||
| Part 1 International Trade Theory\r | 32 | ||
| 2 World Trade: An Overview | 32 | ||
| Who Trades with Whom? | 32 | ||
| Size Matters: The Gravity Model | 33 | ||
| Using the Gravity Model: Looking for Anomalies | 35 | ||
| Impediments to Trade: Distance, Barriers, and Borders | 36 | ||
| The Changing Pattern of World Trade | 38 | ||
| Has the World Gotten Smaller? | 38 | ||
| What Do We Trade? | 40 | ||
| Service Offshoring | 41 | ||
| Do Old Rules Still Apply? | 43 | ||
| Summary | 44 | ||
| 3 Labor Productivity and Comparative Advantage: The Ricardian Model | 46 | ||
| The Concept of Comparative Advantage | 47 | ||
| A One-Factor Economy\r | 48 | ||
| Relative Prices and Supply | 50 | ||
| Trade in a One-Factor World\r | 51 | ||
| Determining the Relative Price after Trade | 52 | ||
| Box: Comparative Advantage in Practice: The Case of Usain Bolt\r | 55 | ||
| The Gains from Trade | 56 | ||
| A Note on Relative Wages | 57 | ||
| Box: Economic Isolation and Autarky over Time and Space\r | 58 | ||
| Misconceptions about Comparative Advantage | 59 | ||
| Productivity and Competitiveness | 59 | ||
| Box: Do Wages Reflect Productivity?\r | 60 | ||
| The Pauper Labor Argument | 61 | ||
| Exploitation | 61 | ||
| Comparative Advantage with Many Goods | 62 | ||
| Setting Up the Model | 62 | ||
| Relative Wages and Specialization | 62 | ||
| Determining the Relative Wage in the Multigood Model | 64 | ||
| Adding Transport Costs and Nontraded Goods | 66 | ||
| Empirical Evidence on the Ricardian Model | 67 | ||
| Summary | 70 | ||
| 4 Specific Factors and Income Distribution | 73 | ||
| The Specific Factors Model | 74 | ||
| Box: What is a Specific Factor?\r | 75 | ||
| Assumptions of the Model | 75 | ||
| Production Possibilities | 76 | ||
| Prices, Wages, and Labor Allocation | 79 | ||
| Relative Prices and the Distribution of Income | 83 | ||
| International Trade in the Specific Factors Model | 85 | ||
| Income Distribution and the Gains from Trade | 86 | ||
| The Political Economy of Trade: A Preliminary View | 89 | ||
| Income Distribution and Trade Politics | 90 | ||
| Case Study: Trade and Unemployment \r | 90 | ||
| International Labor Mobility | 94 | ||
| Case Study: Wage Convergence in the European Union \r | 96 | ||
| Case Study: Immigration and the U.S. Economy: Future Prospects \r | 98 | ||
| Summary | 101 | ||
| 5 Resources and Trade: The Heckscher-Ohlin Model\r | 109 | ||
| Model of a Two-Factor Economy\r | 110 | ||
| Prices and Production | 110 | ||
| Choosing the Mix of Inputs | 113 | ||
| Factor Prices and Goods Prices | 115 | ||
| Resources and Output | 118 | ||
| Effects of International Trade between Two-Factor Economies\r | 119 | ||
| Relative Prices and the Pattern of Trade | 120 | ||
| Trade and the Distribution of Income | 121 | ||
| Case Study North-South Trade and Income Inequality\r | 122 | ||
| Skill-Biased Technological Change and Income Inequality\r | 124 | ||
| Box: The Declining Labor Share of Income and Capital-Skill Complementarity \r | 128 | ||
| Factor-Price Equalization\r | 129 | ||
| Empirical Evidence on the Heckscher-Ohlin Model\r | 130 | ||
| Trade in Goods as a Substitute for Trade in Factors: Factor Content of Trade | 131 | ||
| Patterns of Exports between Developed and Developing Countries | 134 | ||
| Implications of the Tests | 136 | ||
| Summary | 137 | ||
| 6 The Standard Trade Model | 145 | ||
| A Standard Model of a Trading Economy | 146 | ||
| Production Possibilities and Relative Supply | 146 | ||
| Relative Prices and Demand | 147 | ||
| The Welfare Effect of Changes in the Terms of Trade | 150 | ||
| Determining Relative Prices | 151 | ||
| Case study: Unequal Gains from Trade across the Income Distribution\r | 151 | ||
| Economic Growth: A Shift of the RS Curve | 154 | ||
| Growth and the Production Possibility Frontier | 154 | ||
| World Relative Supply and the Terms of Trade | 156 | ||
| International Effects of Growth | 157 | ||
| Case Study: Has the Growth of Newly Industrializing Economies Hurt Advanced Nations?\r | 158 | ||
| Tariffs and Export Subsidies: Simultaneous Shifts in RS and RD | 160 | ||
| Relative Demand and Supply Effects of a Tariff | 160 | ||
| Effects of an Export Subsidy | 161 | ||
| Implications of Terms of Trade Effects: Who Gains and Who Loses? | 162 | ||
| International Borrowing and Lending | 163 | ||
| Intertemporal Production Possibilities and Trade | 163 | ||
| The Real Interest Rate | 164 | ||
| Intertemporal Comparative Advantage | 166 | ||
| Summary | 166 | ||
| 7 External Economies of Scale and the International Location of Production | 173 | ||
| Economies of Scale and International Trade: An Overview | 174 | ||
| Economies of Scale and Market Structure | 175 | ||
| The Theory of External Economies | 176 | ||
| Specialized Suppliers | 176 | ||
| Labor Market Pooling | 177 | ||
| Knowledge Spillovers | 178 | ||
| External Economies and Market Equilibrium | 179 | ||
| External Economies and International Trade | 180 | ||
| External Economies, Output, and Prices | 180 | ||
| External Economies and the Pattern of Trade | 181 | ||
| Box: Holding the World Together\r | 183 | ||
| Trade and Welfare with External Economies | 184 | ||
| Dynamic Increasing Returns | 185 | ||
| Interregional Trade and Economic Geography | 186 | ||
| Box: Soccer and the English Premiere League\r | 188 | ||
| Summary | 189 | ||
| 8 Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises | 192 | ||
| The Theory of Imperfect Competition | 193 | ||
| Monopoly: A Brief Review | 194 | ||
| Monopolistic Competition | 196 | ||
| Monopolistic Competition and Trade | 201 | ||
| The Effects of Increased Market Size | 201 | ||
| Gains from an Integrated Market: A Numerical Example | 202 | ||
| The Significance of Intra-Industry Trade\r | 206 | ||
| Case Study: Automobile Intra-Industry Trade within Asean-4: 1998–2002\r | 208 | ||
| Firm Responses to Trade: Winners, Losers, and Industry Performance | 209 | ||
| Performance Differences across Producers | 210 | ||
| The Effects of Increased Market Size | 212 | ||
| Trade Costs and Export Decisions | 214 | ||
| Dumping | 216 | ||
| Case study: Antidumping as Protectionism\r | 217 | ||
| Multinationals and Outsourcing | 219 | ||
| Case study: Patterns of FDI Flows around the World\r | 219 | ||
| The Firm’s Decision Regarding Foreign Direct Investment | 223 | ||
| Outsourcing | 224 | ||
| Box: Whose Trade Is It?\r | 225 | ||
| Case Study: Shipping Jobs Overseas? Offshoring and Labor Market Outcomes in Germany\r | 227 | ||
| Consequences of Multinationals and Foreign Outsourcing | 230 | ||
| Summary | 231 | ||
| Part 2 International Trade Policy | 237 | ||
| 9 The Instruments of Trade Policy | 237 | ||
| Basic Tariff Analysis | 237 | ||
| Supply, Demand, and Trade in a Single Industry | 238 | ||
| Effects of a Tariff | 240 | ||
| Measuring the Amount of Protection | 241 | ||
| Costs and Benefits of a Tariff | 243 | ||
| Consumer and Producer Surplus | 243 | ||
| Measuring the Costs and Benefits | 245 | ||
| Box: Tariffs and Retaliation\r | 247 | ||
| Other Instruments of Trade Policy | 249 | ||
| Export Subsidies: Theory | 249 | ||
| Case Study: Europe’s Common Agricultural Policy\r | 250 | ||
| Import Quotas: Theory | 251 | ||
| Case Study: Tariff-Rate Quota Origin and its Application in Practice with Oilseeds\r | 252 | ||
| Voluntary Export Restraints | 255 | ||
| Case Study: A Voluntary Export Restraint in Practice\r | 256 | ||
| Local Content Requirements | 257 | ||
| Box: Healthcare Protection with Local Content Requirements\r | 258 | ||
| Other Trade Policy Instruments | 259 | ||
| The Effects of Trade Policy: A Summary | 259 | ||
| Summary | 260 | ||
| 10 The Political Economy of Trade Policy | 268 | ||
| The Case for Free Trade | 269 | ||
| Free Trade and Efficiency | 269 | ||
| Additional Gains from Free Trade | 270 | ||
| Rent Seeking | 271 | ||
| Political Argument for Free Trade | 271 | ||
| National Welfare Arguments against Free Trade | 272 | ||
| The Terms of Trade Argument for a Tariff | 272 | ||
| The Domestic Market Failure Argument against Free Trade | 273 | ||
| How Convincing Is the Market Failure Argument? | 275 | ||
| Income Distribution and Trade Policy | 276 | ||
| Electoral Competition | 277 | ||
| Collective Action | 278 | ||
| Box: Politicians for Sale: Evidence from the 1990s\r | 279 | ||
| Modeling the Political Process | 280 | ||
| Who Gets Protected? | 280 | ||
| International Negotiations and Trade Policy | 282 | ||
| The Advantages of Negotiation | 283 | ||
| International Trade Agreements: A Brief History | 284 | ||
| The Uruguay Round | 286 | ||
| Trade Liberalization | 286 | ||
| Administrative Reforms: From the GATT to the WTO | 287 | ||
| Benefits and Costs | 288 | ||
| Box: Settling a Dispute—And Creating One\r | 289 | ||
| Case study: Testing the WTO’s Metal\r | 290 | ||
| The End of Trade Agreements? | 291 | ||
| Box: Do Agricultural Subsidies Hurt the Third World?\r | 292 | ||
| Preferential Trading Agreements | 293 | ||
| Box: Free Trade Area Versus Customs Union\r | 294 | ||
| Box: Brexit\r | 295 | ||
| Case study: Trade Diversion in South America\r | 296 | ||
| The Trans-Pacific Partnership\r | 297 | ||
| Summary | 298 | ||
| 11 Trade Policy in Developing Countries | 305 | ||
| Import-Substituting Industrialization\r | 306 | ||
| The Infant Industry Argument | 306 | ||
| Promoting Manufacturing through Protection | 308 | ||
| Case Study: Export-Led Strategy\r | 310 | ||
| Results of Favoring Manufacturing: Problems of Import-Substituting Industrialization\r | 311 | ||
| Trade Liberalization since 1985 | 313 | ||
| Trade and Growth: Takeoff in Asia | 315 | ||
| Box: India’s Boom\r | 317 | ||
| Summary | 317 | ||
| 12 Controversies in Trade Policy | 320 | ||
| Sophisticated Arguments for Activist Trade Policy | 321 | ||
| Technology and Externalities | 321 | ||
| Imperfect Competition and Strategic Trade Policy | 324 | ||
| Box: A Warning from Intel’s Founder\r | 326 | ||
| Case Study: When the Chips Were Up\r | 327 | ||
| Globalization and Low-Wage Labor\r | 329 | ||
| The Anti-Globalization Movement\r | 329 | ||
| Trade and Wages Revisited | 330 | ||
| Labor Standards and Trade Negotiations | 332 | ||
| Environmental and Cultural Issues | 332 | ||
| The WTO and National Independence | 333 | ||
| Case Study: A Tragedy in Bangladesh\r | 334 | ||
| Globalization and the Environment | 335 | ||
| Globalization, Growth, and Pollution | 335 | ||
| The Problem of “Pollution Havens” | 337 | ||
| The Carbon Tariff Dispute | 338 | ||
| Trade Shocks and Their Impact on Communities | 339 | ||
| Summary | 340 | ||
| Mathematical Postscripts | 343 | ||
| Postscript to Chapter 5: The Factor-Proportions Model\r | 343 | ||
| Factor Prices and Costs | 343 | ||
| Goods Prices and Factor Prices | 345 | ||
| Factor Supplies and Outputs | 346 | ||
| Postscript to Chapter 6: The Trading World Economy | 347 | ||
| Supply, Demand, and Equilibrium | 347 | ||
| Supply, Demand, and the Stability of Equilibrium | 349 | ||
| Effects of Changes in Supply and Demand | 351 | ||
| Economic Growth | 351 | ||
| A Transfer of Income | 352 | ||
| A Tariff | 353 | ||
| Postscript to Chapter 8: The Monopolistic Competition Model | 355 | ||
| Index | 357 | ||
| Credits | 366 |