Additional Information
Book Details
Abstract
The book is aimed at undergraduate students taking Level 2 or Level 3 courses in international economics. As well as students specialising in economics, the book is likely to be of interest to students on business studies, management, and social science programmes.
Massive changes took place in the world economy in the last quarter of the twentieth century and the speed with which markets in goods, services, and finance were liberalised has no historical precedent. This brand new international economics text reflects recent developments in the world economy as well as thoroughly covering the central components of an international economics course, rooted in classical analysis and the doctrine of comparative advantage.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Cover | Cover | ||
| International Economics | i | ||
| Contents | v | ||
| Foreword | xiii | ||
| Preface | xv | ||
| Acknowledgements | xix | ||
| Introduction and overview | 1 | ||
| Why international economics? | 1 | ||
| Why a European focus? | 3 | ||
| Overview | 4 | ||
| Part 1 Trade theory and policy | 5 | ||
| The theory of trade | 7 | ||
| Introduction | 7 | ||
| Objectives | 8 | ||
| Mercantilism | 9 | ||
| Adam Smith and absolute advantage | 10 | ||
| David Ricardo and comparative advantage | 13 | ||
| Opportunity cost and the pure theory of trade | 15 | ||
| Factor endowments | 18 | ||
| Testing the Ricardian and Heckscher–Ohlin models | 22 | ||
| The influence of the free trade doctrine | 25 | ||
| Summary | 27 | ||
| Key concepts | 27 | ||
| Questions for discussion | 28 | ||
| Suggested reading | 28 | ||
| Developments in the theory of trade | 29 | ||
| Introduction | 29 | ||
| Objectives | 30 | ||
| Technology and trade | 30 | ||
| Patterns of demand | 32 | ||
| Imperfect competition | 33 | ||
| Increasing returns | 35 | ||
| Spatial concentration and trade | 37 | ||
| Case study 3.1 | 38 | ||
| Case study 3.2 | 39 | ||
| Gravity trade models | 40 | ||
| Summary | 43 | ||
| Key concepts | 43 | ||
| Questions for discussion | 43 | ||
| Suggested reading | 44 | ||
| Theory of trade protection | 45 | ||
| Introduction | 45 | ||
| Objectives | 47 | ||
| Tariffs and non-tariff barriers | 47 | ||
| Exchange and capital controls as barriers to trade | 50 | ||
| Welfare effects of a tariff | 51 | ||
| ‘Old’ arguments for protection | 54 | ||
| External economies and research and development | 57 | ||
| Imperfect competition and the transfer of monopoly profit | 59 | ||
| Political economy of trade policy | 61 | ||
| Self-interest and the prisoner’s dilemma | 63 | ||
| Income distribution and social objectives | 66 | ||
| Case study 4.1 | 67 | ||
| Case study 4.2 | 68 | ||
| Summary | 69 | ||
| Key concepts | 70 | ||
| Questions for discussion | 71 | ||
| Suggested reading | 71 | ||
| International trade policy | 72 | ||
| Introduction | 72 | ||
| Objectives | 73 | ||
| Economic theory versus international political economy | 74 | ||
| From GATT to the WTO | 75 | ||
| The WTO | 77 | ||
| WTO and the environment | 78 | ||
| Social issues and the WTO | 80 | ||
| Market access | 82 | ||
| Case study 5.1 | 83 | ||
| Trade blocs and the WTO | 84 | ||
| The EU and the WTO | 85 | ||
| Summary | 87 | ||
| Key concepts | 88 | ||
| Questions for discussion | 88 | ||
| Team project on the WTO | 88 | ||
| Suggested reading | 89 | ||
| Trade and growth, past and present | 90 | ||
| Introduction | 90 | ||
| Objectives | 92 | ||
| Static and dynamic effects of trade | 92 | ||
| Vent for surplus and staples theory | 95 | ||
| Is trade an engine of growth? | 98 | ||
| Trade liberalisation | 102 | ||
| Trade policy reform in transition economies | 104 | ||
| Regional trading arrangements versus liberalisation | 105 | ||
| Case study 6.1 | 108 | ||
| Growth, trade and de-industrialisation | 110 | ||
| Summary | 111 | ||
| Key concepts | 112 | ||
| Questions for discussion | 112 | ||
| Suggested reading | 113 | ||
| International factor mobility | 114 | ||
| Introduction | 114 | ||
| Objectives | 115 | ||
| Capital and labour flows in history | 116 | ||
| Theory of capital movements | 118 | ||
| Multinational enterprises and factor mobility | 120 | ||
| Europe’s foreign direct investment | 123 | ||
| Labour migration | 125 | ||
| Migration in Europe | 129 | ||
| Case study 7.1 | 130 | ||
| Case study 7.2 | 132 | ||
| Summary | 133 | ||
| Key concepts | 133 | ||
| Questions for discussion | 134 | ||
| Suggested reading | 134 | ||
| Part 2 International monetary economics | 135 | ||
| Balance of payments accounts | 137 | ||
| Introduction | 137 | ||
| Objectives | 138 | ||
| The UK balance of payments | 138 | ||
| The UK current account | 140 | ||
| The UK capital account | 143 | ||
| The UK financial account | 144 | ||
| Errors and omissions | 146 | ||
| The UK international investment position | 147 | ||
| The euro area balance of payments | 149 | ||
| Summary | 152 | ||
| Key concepts | 153 | ||
| Questions for discussion | 153 | ||
| Suggested reading | 154 | ||
| Foreign exchange markets | 155 | ||
| Introduction | 155 | ||
| Objectives | 156 | ||
| The mechanism of international payments | 156 | ||
| Exchange rates, swaps, futures and options | 158 | ||
| The determination of the equilibrium exchange rate | 162 | ||
| Case study 9.1 | 164 | ||
| Purchasing-power parities | 167 | ||
| Arbitrage | 169 | ||
| International financial flows | 170 | ||
| Financial markets and the foreign exchange market | 173 | ||
| Case study 9.2 | 175 | ||
| Summary | 176 | ||
| Key concepts | 177 | ||
| Questions for discussion | 177 | ||
| Suggested reading | 178 | ||
| The exchange rate and economic policy | 179 | ||
| Introduction | 179 | ||
| Objectives | 180 | ||
| The gold standard (1880–1914) | 180 | ||
| The Bretton Woods system (1946–71) | 184 | ||
| Managed flexibility | 187 | ||
| Case study 10.1 | 189 | ||
| Money supply, output, inflation and the exchange rate under managed flexibility | 190 | ||
| The volatility of exchange rates | 192 | ||
| Choice of exchange rate regime | 193 | ||
| Case study 10.2 | 195 | ||
| The currency board system | 196 | ||
| Summary | 198 | ||
| Key concepts | 199 | ||
| Questions for discussion | 199 | ||
| Suggested reading | 199 | ||
| Capital flows and financial crises | 201 | ||
| Introduction | 201 | ||
| Objectives | 202 | ||
| Case study 11.1 | 202 | ||
| Portfolio theory and diversification | 204 | ||
| Financial crises | 206 | ||
| The crisis in Asia | 208 | ||
| The 1998 Russian crisis | 211 | ||
| Contagion | 212 | ||
| Herd behaviour | 213 | ||
| Early warning systems | 214 | ||
| Safety zones for emerging markets | 215 | ||
| Summary | 217 | ||
| Key concepts | 218 | ||
| Questions for discussion | 218 | ||
| Suggested reading | 218 | ||
| Part 3 The global economy | 219 | ||
| The European Union in the global economy | 221 | ||
| Introduction | 221 | ||
| Objectives | 222 | ||
| Chronology of the European Union | 223 | ||
| The Treaty of Rome and the internal market | 224 | ||
| Case study 12.1 | 225 | ||
| The European Monetary System and the Exchange Rate Mechanism | 226 | ||
| Case study 12.2 | 229 | ||
| European Monetary Union | 230 | ||
| Case study 12.3 | 231 | ||
| Economic management in the euro area | 233 | ||
| Case study 12.4 | 237 | ||
| Case study 12.5 | 238 | ||
| Accession countries and the euro | 239 | ||
| Summary | 241 | ||
| Key concepts | 241 | ||
| Questions for discussion | 242 | ||
| Suggested reading | 242 | ||
| Europe’s transition economies in the global economy | 243 | ||
| Introduction | 243 | ||
| Objectives | 246 | ||
| Case study 13.1 | 246 | ||
| Timetable of transition | 247 | ||
| From plan to market | 249 | ||
| GDP levels and GDP growth levels in Europe’s transition economies | 253 | ||
| Poverty during the transition | 255 | ||
| Trade liberalisation and the exchange rate | 257 | ||
| Capital flows | 261 | ||
| Case study 13.2 | 263 | ||
| EU accession and transition economies | 266 | ||
| Case study 13.3 | 268 | ||
| Summary | 269 | ||
| Key concepts | 269 | ||
| Questions for discussion | 270 | ||
| Suggested reading | 270 | ||
| International institutions | 272 | ||
| Introduction | 272 | ||
| Objectives | 274 | ||
| The IMF | 274 | ||
| Reform of the IMF | 277 | ||
| Case study 14.1 | 280 | ||
| The World Bank | 281 | ||
| The debt problem | 283 | ||
| Case study 14.2 | 284 | ||
| The World Bank’s comprehensive development framework | 285 | ||
| The United Nations and human development | 286 | ||
| Summary | 290 | ||
| Key concepts | 290 | ||
| Questions for discussion | 291 | ||
| Suggested reading | 291 | ||
| Challenges in the global economy: trade, finance and technology | 292 | ||
| Introduction | 292 | ||
| Objectives | 293 | ||
| Global electronic commerce | 293 | ||
| Digitised products and intellectual property protection | 298 | ||
| Case study 15.1 | 300 | ||
| The world economy offline and online | 301 | ||
| Money laundering and illicit trafficking | 304 | ||
| New biotechnology and trade | 306 | ||
| Case study 15.2 | 310 | ||
| Summary | 311 | ||
| Key concepts | 311 | ||
| Questions for discussion | 312 | ||
| Suggested reading | 312 | ||
| Appendix A The geometry of trade | 313 | ||
| Appendix B Making use of the internet | 320 | ||
| Bibliography | 322 | ||
| Index | 329 |