International EconomicsInternational Economics, 13th Edition provides students with a comprehensive, up-to-date review of the field’s essential principles and theory. This comprehensive textbook explains the concepts necessary to understand, evaluate, and address the economic problems and issues the nations of the world are currently facing, and are likely to face in the future. Balancing depth and accessibility, the text helps students identify the real-world relevance of the material through extensive practical applications and examples. The new, thoroughly-updated and expanded edition provides students with a solid knowledgebase in international trade theory and policy, balance of payments, foreign exchange markets and exchange rates, open-economy macroeconomics, and the international monetary system. The text uniquely employs the same graphical and numerical model in chapters that cover the same basic concept, allowing students to recognize the relationship among the different topics without having to start with a new example each time. Clear, straightforward discussions of each key concept and theory are complemented by concrete, accessible, and relatable examples that serve to strengthen student comprehension and retention. Topics include the ‘Great Recession,’ the increase in trade protectionism, excessive volatility and large misalignments of exchange rates, and the impacts of resource scarcity and climate change to continued growth and sustainable development. |
Contents
Introduction 1 | 1 |
CASE STUDY 11 The Dell PCs iPhones and iPads Sold in the United States | 2 |
CASE STUDY 14 Rising Importance of International Trade to | 7 |
CASE STUDY 15 The Gravity Model at Work 10 | 10 |
International Trade Theory | 13 |
Basic International Trade Data 20 | 20 |
3 | 22 |
INTERNATIONAL TRADE THEORY 2 The Law of Comparative Advantage 29 | 29 |
CASE STUDY 101 Economic Profile of the EU NAFTA and Japan | 270 |
CASE STUDY 104 Economic Profile of Mercosur | 276 |
International Trade and Economic Development | 289 |
CASE STUDY 111 The East Asian Miracle of Growth and Trade | 294 |
CASE STUDY 113 The Growth of GDP of Rich Countries Globalizers | 305 |
CASE STUDY 116 Globalization and World Poverty | 311 |
International Resource Movements and Multinational Corporations | 319 |
CASE STUDY 121 Fluctuations in Foreign Direct Investment Flows to | 322 |
CASE STUDY 21 Munns Mercantilistic Views on Trade 30 | 30 |
CASE STUDY 23 The Petition of the Candlemakers 38 | 38 |
CASE STUDY 24 Other Empirical Tests of the Ricardian Model | 46 |
The Standard Theory of International Trade | 53 |
CASE STUDY 31 The Comparative Advantage of the Largest Advanced and Emerging | 59 |
CASE STUDY 34 International Trade and Deindustrialization in the United States | 65 |
Summary | 68 |
Some Important Conclusions | 76 |
Demand and Supply Offer Curves and the Terms of Trade | 77 |
CASE STUDY 41 Demand Supply and the International Price of Petroleum | 79 |
CASE STUDY 43 The Terms of Trade of the G7 Countries | 87 |
Key Terms | 89 |
General Equilibrium of Production Consumption and Trade | 96 |
Factor Endowments and the HeckscherOhlin Theory | 99 |
CASE STUDY 51 Relative Resource Endowment of Various Countries | 105 |
CASE STUDY 54 The Factor Intensity of Trade of Various Countries | 111 |
Selected Bibliography | 116 |
CASE STUDY 56 Convergence of Real Wages among Leading Advanced Countries | 118 |
Summary | 125 |
Absolute FactorPrice Equalization | 132 |
Economies of Scale Imperfect Competition and International Trade | 138 |
CASE STUDY 61 The New International Economies of Scale | 142 |
CASE STUDY 66 IntraIndustry Trade Indexes for G20 Countries | 148 |
CASE STUDY 68 The United States as the Most Competitive Economy | 155 |
Summary | 160 |
Economic Growth and International Trade | 166 |
CASE STUDY 71 Growth in the Capital Stock per Worker of Selected Countries | 172 |
CASE STUDY 73 Growth and the Emergence of New Economic Giants | 181 |
Key Terms | 185 |
Tariffs | 195 |
CASE STUDY 81 Average Tariff on Nonagricultural Products in Major Developed | 196 |
CASE STUDY 84 The Welfare Effect of Liberalizing Trade on Some EU Products | 202 |
Nontariff Trade Barriers and the New Protectionism | 226 |
CASE STUDY 91 The Economic Effects of the U S Quota on Sugar Imports | 228 |
CASE STUDY 93 Number of Antidumping Measures Imposed by G20 Members | 234 |
CASE STUDY 96 Benefits to the World Economy from Complete | 241 |
CASE STUDY 98 Gains from the Uruguay Round | 252 |
Customs Unions and FreeTrade Areas | 262 |
CASE STUDY 123 The Worlds Largest Industrial Corporations | 330 |
CASE STUDY 125 U S Immigration and Debate Over Immigration Policy | 337 |
Balance of Payments | 347 |
CASE STUDY 131 The Major Goods Exports and Imports of the United States | 352 |
CASE STUDY 134 The United States as a Debtor Nation | 359 |
Foreign Exchange Markets and Exchange Rates | 366 |
CASE STUDY 141 The U S Dollar as the Dominant International Currency | 368 |
CASE STUDY 144 Size Currency and Geographical Distribution of the Foreign | 379 |
CASE STUDY 145 Carry Trade | 386 |
CASE STUDY 146 Size and Growth of Eurocurrency Market | 393 |
Exchange Rate Determination | 401 |
CASE STUDY 151 AbsolutePurchasingPower Parity in the Real World | 403 |
CASE STUDY 154 Monetary Growth and Inflation | 413 |
CASE STUDY 157 Exchange Rate Overshooting of the U S Dollar | 424 |
OPENECONOMY MACROECONOMICS AND THE INTERNATIONAL MONETARY SYSTEM | 435 |
The Price Adjustment Mechanism with Flexible and Fixed Exchange Rates | 437 |
CASE STUDY 161 Currency Depreciation and Inflation in Developing Countries | 442 |
CASE STUDY 162 Estimated Price Elasticities in International Trade | 448 |
The Income Adjustment Mechanism and Synthesis of Automatic Adjustments | 464 |
CASE STUDY 171 Income Elasticity of Imports | 470 |
CASE STUDY 174 Growth and Current Account Balance in the G7 Countries | 476 |
Adjustment Policies | 491 |
CASE STUDY 181 Government PrivateSector and Current Account | 492 |
CASE STUDY 183 Effect of U S Fiscal Policy in the United States and Abroad | 505 |
CASE STUDY 187 Direct Controls on International Transactions Around the World | 518 |
Aggregate Demand and Aggregate Supply | 528 |
CASE STUDY 191 Deviations of ShortRun Outputs from the Natural Level | 533 |
CASE STUDY 194 Petroleum Shocks and Stagflation in the United States | 547 |
Flexible versus Fixed Exchange Rates the European Monetary System and Macroeconomic Policy Coordination | 552 |
CASE STUDY 201 Macroeconomic Performance under Fixed and Flexible | 560 |
CASE STUDY 207 Exchange Rate Arrangements of IMF Members | 577 |
Past Present and Future | 586 |
CASE STUDY 211 Macroeconomic Performance Under Different Exchange | 595 |
CASE STUDY 214 The 20082009 Global Financial Crisis and Great Recession | 610 |
GLOSSARY OF KEY TERMS | 623 |
Answers to Selected Problems Glossary of Key Terms | 1 |
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Common terms and phrases
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