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Book Details
Abstract
For students taking a course in International Economics.
Capture students’ attention with the issues and real data of today’s most recent policy controversies.
International Economics is an accessible, comprehensive and relevant guide for studying international economics. Using real data and issues that motivate theoretical discussions, this text captures students’ attention and equips them with a practical understanding of major policy questions.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Cover | Cover | ||
| Contents\r | 11 | ||
| Preface | 17 | ||
| About The Authors | 21 | ||
| Chapter 1 An Introduction to International Trade\r | 23 | ||
| Characteristics of National Economies | 24 | ||
| Economic Growth | 28 | ||
| International Trade | 29 | ||
| The Direction of International Trade | 32 | ||
| What Goods Do Countries Trade? | 37 | ||
| Summary | 44 | ||
| Exercises | 44 | ||
| Chapter 2 Tools of Analysis for International Trade\rModels\r | 45 | ||
| Some Methodological Preliminaries | 46 | ||
| The Basic Model: Asumptions | 48 | ||
| Global Insights 2.1: World Response to Higher Relative Price of Oil | 50 | ||
| The Basic Model: Solutions | 56 | ||
| Measuring National Welfare | 58 | ||
| National Supply and Demand | 60 | ||
| Summary | 62 | ||
| Exercises | 62 | ||
| Appendix 2.1:Derivation of National Supply and Demand Curves\r | 63 | ||
| Chapter 3 The Classical Model of International Trade\r | 65 | ||
| Absolute Advantage as A Basis For Trade: Adam Smith’s Model | 66 | ||
| Comparative Advantage As A Basis For Trade: David Ricardo’s Model | 71 | ||
| The General Equilibrium Solution of The Classical Model | 72 | ||
| The Gains From International Trade | 76 | ||
| Global Insights 3.1: Japan’s Gains from Entry into World Trade in 1858 | 78 | ||
| Trade and Wages | 78 | ||
| Global Insights 3.2: Wage and Productivity Comparisons for the United States and Mexico\r | 80 | ||
| An Evaluation of the Classical Model | 82 | ||
| Summary | 82 | ||
| Exercises | 83 | ||
| The Classical Model With Many Goods* | 84 | ||
| Offer Curves and The Terms of Trade | 86 | ||
| Chapter 4 The Heckscher–Ohlin Model\r | 89 | ||
| The HO Model: Basic Assumptions | 90 | ||
| Global Insights 4.1: Capital/Labor Ratios of Selected U.S. Industries | 92 | ||
| The HO Theorem | 94 | ||
| Equilibrium In The HO Model\r | 96 | ||
| Some New HO Theorems | 101 | ||
| Some Final Observations | 105 | ||
| Summary | 105 | ||
| Exercises | 106 | ||
| Appendix 4.1:Alternate Proofs of Selected HO Theorems\r | 107 | ||
| The Heckscher–Ohlin Theorem (Price Definition) | 107 | ||
| The Rybczynski Theorem | 109 | ||
| The Stolper–Samuelson Theorem\r | 110 | ||
| Appendix 4.2:The Specific Factors Model\r | 112 | ||
| Chapter 5 Tests of Trade Models: the Leontief Paradox\rand Its Aftermath\r | 114 | ||
| Tests of the Classical Model | 115 | ||
| Tests of the HO Model | 117 | ||
| Attempted Reconciliations of Leontief’s Findings\r | 118 | ||
| Other Tests of the HO Model | 121 | ||
| Recent Tests of the HO Model | 122 | ||
| Alternative Theories of Comparative Advantage | 124 | ||
| Human Skills Theory | 124 | ||
| Product Life Cycle Theory | 124 | ||
| Similarity of Preferences Theory | 126 | ||
| Intraindustry Trade | 126 | ||
| Increasing Returns and Imperfect Competition | 129 | ||
| Conclusions | 132 | ||
| Summary | 133 | ||
| Exercises | 134 | ||
| References | 134 | ||
| Chapter 6 Tariffs\r | 135 | ||
| The Gains from Free Trade | 136 | ||
| Tariffs: an Introduction | 138 | ||
| Tariffs: An Economic Analysis | 142 | ||
| The Gains from Free Trade: One More Time | 144 | ||
| The Welfare Cost of Tariffs | 146 | ||
| Tariffs: Some Extensions | 149 | ||
| Export Tariff | 149 | ||
| Global Insights 6.1: The Welfare Costs of Tariffs: Estimates from CertainU.S. Industries | 150 | ||
| Global Insights 6.2: Argentine Export Tariffs\r | 152 | ||
| The Optimal Tariff* | 153 | ||
| Global Insights 6.3: The Smoot-Hawley Tariff and Its Aftermath | 156 | ||
| How High Are Tariffs? | 157 | ||
| Summary | 159 | ||
| Exercises | 159 | ||
| References | 160 | ||
| Chapter 7 Nontariff Barriers and Arguments for\rProtection\r | 161 | ||
| Quotas | 162 | ||
| The Welfare Effects of Quotas | 164 | ||
| The Equivalence or Nonequivalence of Tariffs and Quotas | 166 | ||
| Other Nontariff Barriers | 168 | ||
| Customs Valuation Practices | 168 | ||
| Government Procurement Policies | 168 | ||
| Technical Barriers to Trade | 169 | ||
| Health and Safety Standards | 170 | ||
| Failure to Protect Intellectual Property Rights* | 171 | ||
| Export Subsidies\r | 172 | ||
| Arguments for Protection | 173 | ||
| Invalid Arguments\r | 173 | ||
| Valid Arguments\r | 175 | ||
| Global Insights 7.1Trade, Technology, and U.S. Pollution | 184 | ||
| Summary | 187 | ||
| Exercises | 188 | ||
| References | 188 | ||
| Chapter 8 Commercial Policy: History and Practice\r | 189 | ||
| History of U.S. Commercial Policy | 190 | ||
| Global Insights 8.1: The GATT Agreement\r | 194 | ||
| The Uruguay Round and the Creation of the WTO | 197 | ||
| Trade Policy Case Study 1: U.S. Tuna Quotas to Save Dolphins\r | 199 | ||
| The Doha Round | 200 | ||
| The Conduct of U.S. Commercial Policy | 201 | ||
| Dumping | 202 | ||
| Antidumping Law | 203 | ||
| Countervailing Duty Law | 206 | ||
| Unfair Foreign Practices: Section 301 | 207 | ||
| Trade Policy Case Study 2: The International Bananas Dispute\r | 208 | ||
| The Escape Clause: Section 201 | 209 | ||
| Other Measures | 210 | ||
| Trade Policy Case Study 3: Tire Imports from China\r | 211 | ||
| Comparisons with Policies in Other Countries | 212 | ||
| Summary | 213 | ||
| Exercises | 214 | ||
| References | 214 | ||
| Chapter 9 Preferential Trade Arrangements\r | 215 | ||
| Preferential Trade Arrangements: Economic Analysis | 217 | ||
| North American Free Trade Agreement | 219 | ||
| Global Insights 9.1: Details of the NAFTA\r | 220 | ||
| Other U.S. Free-Trade Area Agreements | 223 | ||
| European Union | 225 | ||
| The EU Government | 225 | ||
| The Single Market Initiative | 226 | ||
| Regionalism Versus Multilateralism | 228 | ||
| Global Insights 9.2: Other Preferential Trade Arrangements\r | 228 | ||
| Summary | 230 | ||
| Exercises | 230 | ||
| References | 231 | ||
| Chapter 10 International Trade and Economic Growth\r | 232 | ||
| Trade and Development* | 233 | ||
| Primary-Export-Led Development Policies | 233 | ||
| Import-Substitution Development Policies | 236 | ||
| Outward-Looking Development Policies | 237 | ||
| Trade and Growth* | 237 | ||
| Trade and Growth: Some Additional Comments | 243 | ||
| Technological Change | 243 | ||
| Growth, Prices, and Welfare | 244 | ||
| Global Insights 10.1: The Dutch Disease\r | 245 | ||
| International Flows of Factors | 246 | ||
| Labor | 246 | ||
| Capital | 248 | ||
| Economic Analysis | 251 | ||
| Global Insights 10.2: U.S. Outsourcing\r | 251 | ||
| Summary | 254 | ||
| Exercises | 255 | ||
| References | 255 | ||
| Chapter 11 The Balance of Payments\r | 256 | ||
| Introduction to Balance-of-Payments Accounting | 257 | ||
| Current Account Entries | 259 | ||
| Financial Accounts Entries | 260 | ||
| Measures of The Balance of Payments | 262 | ||
| Current Account Balance | 263 | ||
| Global Insights 11.1: Is the U.S. Current Account Deficit Sustainable?\r | 265 | ||
| Official Settlements Balance | 266 | ||
| Transactions Classifications | 267 | ||
| Balance-of-Payments Equilibrium and Adjustment | 269 | ||
| Summary | 270 | ||
| Exercises | 270 | ||
| References | 271 | ||
| Chapter 12 The Foreign-Exchange Market\r | 272 | ||
| Spot Rates | 274 | ||
| Global Insights 12.1: Exchange Rate Indexes\r | 276 | ||
| Forward Rates | 276 | ||
| Arbitrage | 277 | ||
| The Futures Market | 280 | ||
| Foreign Currency Options | 280 | ||
| The Foreign-Exchange Market and the Balance of Payments (BOP) | 281 | ||
| Summary | 284 | ||
| Exercises | 284 | ||
| References | 285 | ||
| Chapter 13 International Monetary Systems\r | 286 | ||
| The Gold Standard: 1880–1914\r | 287 | ||
| The Interwar Period: 1918–1939\r | 290 | ||
| The Bretton Woods System: 1944–1973 | 292 | ||
| Today’s International Monetary System: 1973–Present | 296 | ||
| The European Monetary System and the Euro* | 300 | ||
| The Choice of An Exchange Rate System | 302 | ||
| Summary | 305 | ||
| Exercises | 305 | ||
| References | 306 | ||
| Chapter 14 Exchange Rates in the Short Run\r | 307 | ||
| Exchange Rate Behavior | 309 | ||
| Uncovered Interest Rate Parity | 311 | ||
| Example 1 | 312 | ||
| Example 2 | 313 | ||
| Expected Exchange Rates and the Term structure Of Interest Rates | 314 | ||
| Tests of Uncovered Interest Rate Parity | 316 | ||
| Global Insights 14.1: The Carry Trade\r | 317 | ||
| Summary | 318 | ||
| Exercises | 318 | ||
| Chapter 15 Exchange Rates in the Long Run\r | 320 | ||
| An Introduction to Purchasing Power Parity | 321 | ||
| Uses of Purchasing Power Parity | 324 | ||
| Tests of Purchasing Power Parity\r | 324 | ||
| Global Insights 15.1: Big Mac PPP\r | 325 | ||
| The Monetary Approach to Exchange Rates | 327 | ||
| Summary | 329 | ||
| Exercises | 329 | ||
| References | 330 | ||
| Chapter 16 Theories of the Current Account\r | 331 | ||
| The Elasticities Approach to the Current Account | 332 | ||
| Elasticities and J Curves\r | 335 | ||
| The Currency-Contract Period | 335 | ||
| The Pass-Through Period | 337 | ||
| The Evidence from Devaluations | 337 | ||
| Global Insights 16.1: The Pass-Through Effect and Profits\r | 338 | ||
| The Absorption Approach | 339 | ||
| The Intertemporal Model | 340 | ||
| A Look at U.S. Data | 344 | ||
| Summary | 346 | ||
| Exercises | 346 | ||
| References | 347 | ||
| Chapter 17 Open-Economy Macroeconomics\r | 348 | ||
| Modeling the Macroeconomy | 349 | ||
| Example 1 | 354 | ||
| Internal External Balance | 356 | ||
| International Policy Coordination | 359 | ||
| Global Insights 17.1: The Plaza Agreement\r | 360 | ||
| Global Insights 17.2: The G20\r | 362 | ||
| Summary | 363 | ||
| Exercises | 363 | ||
| Appendix 17.1The Mundell-Fleming Model | 364 | ||
| The IS Curve\r | 364 | ||
| The LM Curve\r | 366 | ||
| The BP Curve\r | 367 | ||
| Equilibrium | 368 | ||
| Monetary Policy Under Fixed Exchange Rates | 369 | ||
| Fiscal Policy Under Fixed Exchange Rates | 370 | ||
| Monetary Policy Under Floating Exchange Rates | 370 | ||
| Fiscal Policy Under Floating Exchange Rates | 371 | ||
| References | 372 | ||
| Chapter 18 International Banking, Debt, and Risk\r | 373 | ||
| The Origins of Offshore Banking | 374 | ||
| Global Insights 18.1: A Black Swan in the Financial Market\r | 376 | ||
| International Banking Facilities | 377 | ||
| Offshore Banking Practices | 378 | ||
| International Debt | 380 | ||
| Global Insights 18.2: The Eurozone Crisis\r | 382 | ||
| IMF Conditionality | 383 | ||
| The Role of Corruption | 385 | ||
| Country-Risk Analysis | 386 | ||
| Summary | 387 | ||
| Exercises | 388 | ||
| References | 388 | ||
| Glossary | 389 | ||
| Index | 394 | ||
| A | 394 | ||
| B\r | 394 | ||
| C | 395 | ||
| D\r | 396 | ||
| E\r | 397 | ||
| F | 398 | ||
| G | 399 | ||
| H | 399 | ||
| I | 400 | ||
| J\r | 401 | ||
| K | 401 | ||
| L\r | 401 | ||
| M | 402 | ||
| N | 403 | ||
| O\r | 403 | ||
| P | 403 | ||
| Q\r | 404 | ||
| R\r | 404 | ||
| S | 405 | ||
| T | 405 | ||
| U | 406 | ||
| V | 407 | ||
| W | 407 | ||
| Y | 408 | ||
| Z | 408 |