International Economics International Edition [Paperback] [Oct 24, 2012] Steven Husted . Michael Melvin

Machine generated contents note: ch. 1 An Introduction to International Trade -- Characteristics of National Economies -- Economic Growth -- International Trade -- The Direction of International Trade -- What Goods do Countries Trade? -- Summary -- Exercises -- ch. 2 Tools of Analysis for International Trade Models -- Some Methodological Preliminaries -- The Basic Model: Assumptions -- Global Insights 2.1 World Response to Higher Relative Price of Oil -- The Basic Model: Solutions -- Measuring National Welfare -- National Supply and Demand -- Summary -- Exercises -- Appendix 2.1 Derivation of National Supply and Demand Curves -- ch. 3 The Classical Model of International Trade -- Absolute Advantage as a Basis for Trade: Adam Smith's Model -- Comparative Advantage as a Basis for Trade: David Ricardo's Model -- The General Equilibrium Solution of the Classical Model -- The Gains from International Trade -- Global Insights 3.1 Japan's Gains from Entry into World Trade in 1858;Note continued: Global Insights 10.1 The Dutch Disease -- International Flows of Factors -- Labor -- Capital -- Economic Analysis -- Global Insights 10.2 U.S. Outsourcing -- Summary -- Exercises -- References -- ch. 11 The Balance of Payments -- Introduction to Balance-of-Payments Accounting -- Current Account Entries -- Financial Accounts Entries -- Measures of the Balance of Payments -- Current Account Balance -- Global Insights 11.1 Is the U.S. Current Account Deficit Sustainable? -- Official Settlements Balance -- Transactions Classifications -- Balance-of-Payments Equilibrium and Adjustment -- Summary -- Exercises -- References -- ch. 12 The Foreign-Exchange Market -- Spot Rates -- Global Insights 12.1 Exchange Rate Indexes -- Forward Rates -- Arbitrage -- The Futures Market -- Foreign Currency Options -- The Foreign Exchange Market and the Balance of Payments (BOP) -- Summary -- Exercises -- References -- ch. 13 International Monetary Systems;Note continued: Trade and Wages -- Global Insights 3.2 Wage and Productivity Comparisons for the United States and Mexico -- An Evaluation of the Classical Model -- Summary -- Exercises -- Appendix 3.1 The Classical Model with Many Goods -- Appendix 3.2 Offer Curves and the Terms of Trade -- ch. 4 The Heckscher -- Ohlin Model -- The HO Model: Basic Assumptions -- Global Insights 4.1 Capital/Labor Ratios of Selected U.S. Industries -- The HO Theorem -- Equilibrium in the HO Model -- Some New HO Theorems -- Global Insights 4.2 Trade, Wages, and Jobs in the U.S. Economy -- Some Final Observations -- Summary -- Exercises -- Appendix 4.1 Alternate Proofs of Selected HO Theorems -- The Heckscher -- Ohlin Theorem (Price Definition) -- The Rybczynski Theorem -- The Stolper -- Samuelson Theorem -- Appendix 4.2 The Specific Factors Model -- ch. 5 Tests of Trade Models: The Leontief Paradox and Its Aftermath -- Tests of the Classical Model -- Tests of the HO Model;Note continued: Elasticities and J Curves -- The Currency-Contract Period -- The Pass-Through Period -- The Evidence from Devaluations -- Global Insights 16.1 The Pass-Through Effect and Profits -- The Absorption Approach -- The Intertemporal Model -- A Look at U.S. Data -- Summary -- Exercises -- References -- ch. 17 Open-Economy Macroeconomics -- Modeling the Macroeconomy -- Example 1 -- Internal External Balance -- International Policy Coordination -- Global Insights 17.1 The Plaza Agreement -- Global Insights 17.2 The G20 -- Summary -- Exercises -- Appendix 17.1 The Mundell-Fleming Model -- The IS Curve -- The LM Curve -- The BP Curve -- Equilibrium -- Monetary Policy under Fixed Exchange Rates -- Fiscal Policy under Fixed Exchange Rates -- Monetary Policy under Floating Exchange Rates -- Fiscal Policy under Floating Exchange Rates -- References -- ch. 18 International Banking, Debt, and Risk -- The Origins of Offshore Banking;Note continued: The Welfare Effects of Quotas -- The Equivalence or Nonequivalence of Tariffs and Quotas -- Other Nontariff Barriers -- Customs Valuation Practices -- Government Procurement Policies -- Technical Barriers to Trade -- Health and Safety Standards -- Failure to Protect Intellectual Property Rights -- Export Subsidies -- Arguments for Protection -- Invalid Arguments -- Valid Arguments -- Global Insights 7.1 Trade, Technology, and U.S. Pollution -- Summary -- Exercises -- References -- ch. 8 Commercial Policy: History and Practice -- History of U.S. Commercial Policy -- Global Insights 8.1 The GATT Agreement -- The Uruguay Round and the Creation of the WTO -- Trade Policy Case Study 1 U.S. Tuna Quotas to Save Dolphins -- The Doha Round -- The Conduct of U.S. Commercial Policy -- Dumping -- Antidumping Law -- Countervailing Duty Law -- Unfair Foreign Practices: Section 301 -- Trade Policy Case Study 2 The International Bananas Dispute;Note continued: The Escape Clause: Section 201 -- Other Measures -- Trade Policy Case Study 3 Tire Imports from China -- Comparisons with Policies in Other Countries -- Summary -- Exercises -- References -- ch. 9 Preferential Trade Arrangements -- Preferential Trade Arrangements: Economic Analysis -- North American Free Trade Agreement -- Global Insights 9.1 Details of the NAFTA -- Other U.S. Free-Trade Area Agreements -- European Union -- The EU Government -- The Single Market Initiative -- Regionalism versus Multilateralism -- Global Insights 9.2 Other Preferential Trade Arrangements -- Summary -- Exercises -- References -- ch. 10 International Trade and Economic Growth -- Trade and Development -- Primary-Export-Led Development Policies -- Import-Substitution Development Policies -- Outward-Looking Development Policies -- Trade and Growth -- Trade and Growth: Some Additional Comments -- Technological Change -- Growth, Prices, and Welfare;Note continued: Attempted Reconciliations of Leontief's Findings -- Other Tests of the HO Model -- Recent Tests of the HO Model -- Alternative Theories of Comparative Advantage -- Human Skills Theory -- Product Life Cycle Theory -- Similarity of Preferences Theory -- Intraindustry Trade -- Increasing Returns and Imperfect Competition -- Conclusions -- Summary -- Exercises -- References -- ch. 6 Tariffs -- The Gains from Free Trade -- Tariffs: An Introduction -- Tariffs: An Economic Analysis -- The Gains from Free Trade: One More Time -- The Welfare Cost of Tariffs -- Tariffs: Some Extensions -- Export Tariff -- Global Insights 6.1 The Welfare Costs of Tariffs: Estimates from Certain U.S. Industries -- Global Insights 6.2 Argentine Export Tariffs -- The Optimal Tariff -- Global Insights 6.3 The Smoot-Hawley Tariff and Its Aftermath -- How High Are Tariffs? -- Summary -- Exercises -- References -- ch. 7 Nontariff Barriers and Arguments for Protection -- Quotas;Note continued: Global Insights 18.1 A Black Swan in the Financial Market -- International Banking Facilities -- Offshore Banking Practices -- Examlple -- International Debt -- Global Insights 18.2 The Eurozone Crisis -- IMF Conditionality -- The Role of Corruption -- Country-Risk Analysis -- Summary -- Exercises -- References.;Note continued: The Gold Standard: 1880 -- 1914 -- The Interwar Period: 1918 -- 1939 -- The Bretton Woods System: 1944 -- 1973 -- Today's International Monetary System: 1973 -- Present -- The European Monetary System and the Euro -- The Choice of an Exchange Rate System -- Summary -- Exercises -- References -- ch. 14 Exchange Rates in the Short Run -- Exchange Rate Behavior -- Uncovered Interest Rate Parity -- Example 1 -- Example 2 -- Expected Exchange Rates and the Term Structure of Interest Rates -- Tests of Uncovered Interest Rate Parity -- Global Insights 14.1 The Carry Trade -- Summary -- Exercises -- ch. 15 Exchange Rates in the Long Run -- An Introduction to Purchasing Power Parity -- Uses of Purchasing Power Parity -- Tests of Purchasing Power Parity -- Global Insights 15.1 Big Mac PPP -- The Monetary Approach to Exchange Rates -- Summary -- Exercises -- References -- ch. 16 Theories of the Current Account -- The Elasticities Approach to the Current Account Cover 1 Contents 11 Preface 17 About The Authors 21 Chapter 1 An Introduction to International Trade 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 Models 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 63 Chapter 3 The Classical Model of International Trade 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 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 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 96 Some New HO Theorems 101 Some Final Observations 105 Summary 105 Exercises 106 Appendix 4.1:Alternate Proofs of Selected HO Theorems 107 The Heckscher–Ohlin Theorem (Price Definition) 107 The Rybczynski Theorem 109 The Stolper–Samuelson Theorem 110 Appendix 4.2:The Specific Factors Model 112 Chapter 5 Tests of Trade Models: the Leontief Paradox and Its Aftermath 114 Tests of the Classical Model 115 Tests of the HO Model 117 Attempted Reconciliations of Leontief’s Findings 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 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 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 Protection 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 172 Arguments for Protection 173 Invalid Arguments 173 Valid Arguments 175 Global Insights 7.1Trade, Technology, and U.S. Pollution 184 Summary 187 Exercises 188 References 188 Chapter 8 Commercial Policy: History and Practice 189 History of U.S. Commercial Policy 190 Global Insights 8.1: The GATT Agreement 194 The Uruguay Round and the Creation of the WTO 197 Trade Policy Case Study 1: U.S. Tuna Quotas to Save Dolphins 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 208 The Escape Clause: Section 201 209 Other Measures 210 Trade Policy Case Study 3: Tire Imports from China 211 Comparisons with Policies in Other Countries 212 Summary 213 Exercises 214 References 214 Chapter 9 Preferential Trade Arrangements 215 Preferential Trade Arrangements: Economic Analysis 217 North American Free Trade Agreement 219 Global Insights 9.1: Details of the NAFTA 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 228 Summary 230 Exercises 230 References 231 Chapter 10 International Trade and Economic Growth 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 245 International Flows of Factors 246 Labor 246 Capital 248 Economic Analysis 251 Global Insights 10.2: U.S. Outsourcing 251 Summary 254 Exercises 255 References 255 Chapter 11 The Balance of Payments 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? 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 272 Spot Rates 274 Global Insights 12.1: Exchange Rate Indexes 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 286 The Gold Standard: 1880–1914 287 The Interwar Period: 1918–1939 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 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 317 Summary 318 Exercises 318 Chapter 15 Exchange Rates in the Long Run 320 An Introduction to Purchasing Power Parity 321 Uses of Purchasing Power Parity 324 Tests of Purchasing Power Parity 324 Global Insights 15.1: Big Mac PPP 325 The Monetary Approach to Exchange Rates 327 Summary 329 Exercises 329 References 330 Chapter 16 Theories of the Current Account 331 The Elasticities Approach to the Current Account 332 Elasticities and J Curves 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 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 348 Modeling the Macroeconomy 349 Example 1 354 Internal External Balance 356 International Policy Coordination 359 Global Insights 17.1: The Plaza Agreement 360 Global Insights 17.2: The G20 362 Summary 363 Exercises 363 Appendix 17.1The Mundell-Fleming Model 364 The IS Curve 364 The LM Curve 366 The BP Curve 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 373 The Origins of Offshore Banking 374 Global Insights 18.1: A Black Swan in the Financial Market 376 International Banking Facilities 377 Offshore Banking Practices 378 International Debt 380 Global Insights 18.2: The Eurozone Crisis 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 394 C 395 D 396 E 397 F 398 G 399 H 399 I 400 J 401 K 401 L 401 M 402 N 403 O 403 P 403 Q 404 R 404 S 405 T 405 U 406 V 407 W 407 Y 408 Z 408 Machine generated contents note: ch. 1 An Introduction to International Trade -- Characteristics of National Economies -- Economic Growth -- International Trade -- The Direction of International Trade -- What Goods do Countries Trade? -- Summary -- Exercises -- ch. 2 Tools of Analysis for International Trade Models -- Some Methodological Preliminaries -- The Basic Model: Assumptions -- Global Insights 2.1 World Response to Higher Relative Price of Oil -- The Basic Model: Solutions -- Measuring National Welfare -- National Supply and Demand -- Summary -- Exercises -- Appendix 2.1 Derivation of National Supply and Demand Curves -- ch. 3 The Classical Model of International Trade -- Absolute Advantage as a Basis for Trade: Adam Smith's Model -- Comparative Advantage as a Basis for Trade: David Ricardo's Model -- The General Equilibrium Solution of the Classical Model -- The Gains from International Trade -- Global Insights 3.1 Japan's Gains from Entry into World Trade in 1858 Note continued: Trade and Wages -- Global Insights 3.2 Wage and Productivity Comparisons for the United States and Mexico -- An Evaluation of the Classical Model -- Summary -- Exercises -- Appendix 3.1 The Classical Model with Many Goods -- Appendix 3.2 Offer Curves and the Terms of Trade -- ch. 4 The Heckscher -- Ohlin Model -- The HO Model: Basic Assumptions -- Global Insights 4.1 Capital/Labor Ratios of Selected U.S. Industries -- The HO Theorem -- Equilibrium in the HO Model -- Some New HO Theorems -- Global Insights 4.2 Trade, Wages, and Jobs in the U.S. Economy -- Some Final Observations -- Summary -- Exercises -- Appendix 4.1 Alternate Proofs of Selected HO Theorems -- The Heckscher -- Ohlin Theorem (Price Definition) -- The Rybczynski Theorem -- The Stolper -- Samuelson Theorem -- Appendix 4.2 The Specific Factors Model -- ch. 5 Tests of Trade Models: The Leontief Paradox and Its Aftermath -- Tests of the Classical Model -- Tests of the HO Model Note continued: Attempted Reconciliations of Leontief's Findings -- Other Tests of the HO Model -- Recent Tests of the HO Model -- Alternative Theories of Comparative Advantage -- Human Skills Theory -- Product Life Cycle Theory -- Similarity of Preferences Theory -- Intraindustry Trade -- Increasing Returns and Imperfect Competition -- Conclusions -- Summary -- Exercises -- References -- ch. 6 Tariffs -- The Gains from Free Trade -- Tariffs: An Introduction -- Tariffs: An Economic Analysis -- The Gains from Free Trade: One More Time -- The Welfare Cost of Tariffs -- Tariffs: Some Extensions -- Export Tariff -- Global Insights 6.1 The Welfare Costs of Tariffs: Estimates from Certain U.S. Industries -- Global Insights 6.2 Argentine Export Tariffs -- The Optimal Tariff -- Global Insights 6.3 The Smoot-Hawley Tariff and Its Aftermath -- How High Are Tariffs? -- Summary -- Exercises -- References -- ch. 7 Nontariff Barriers and Arguments for Protection -- Quotas Note continued: The Welfare Effects of Quotas -- The Equivalence or Nonequivalence of Tariffs and Quotas -- Other Nontariff Barriers -- Customs Valuation Practices -- Government Procurement Policies -- Technical Barriers to Trade -- Health and Safety Standards -- Failure to Protect Intellectual Property Rights -- Export Subsidies -- Arguments for Protection -- Invalid Arguments -- Valid Arguments -- Global Insights 7.1 Trade, Technology, and U.S. Pollution -- Summary -- Exercises -- References -- ch. 8 Commercial Policy: History and Practice -- History of U.S. Commercial Policy -- Global Insights 8.1 The GATT Agreement -- The Uruguay Round and the Creation of the WTO -- Trade Policy Case Study 1 U.S. Tuna Quotas to Save Dolphins -- The Doha Round -- The Conduct of U.S. Commercial Policy -- Dumping -- Antidumping Law -- Countervailing Duty Law -- Unfair Foreign Practices: Section 301 -- Trade Policy Case Study 2 The International Bananas Dispute Note continued: The Escape Clause: Section 201 -- Other Measures -- Trade Policy Case Study 3 Tire Imports from China -- Comparisons with Policies in Other Countries -- Summary -- Exercises -- References -- ch. 9 Preferential Trade Arrangements -- Preferential Trade Arrangements: Economic Analysis -- North American Free Trade Agreement -- Global Insights 9.1 Details of the NAFTA -- Other U.S. Free-Trade Area Agreements -- European Union -- The EU Government -- The Single Market Initiative -- Regionalism versus Multilateralism -- Global Insights 9.2 Other Preferential Trade Arrangements -- Summary -- Exercises -- References -- ch. 10 International Trade and Economic Growth -- Trade and Development -- Primary-Export-Led Development Policies -- Import-Substitution Development Policies -- Outward-Looking Development Policies -- Trade and Growth -- Trade and Growth: Some Additional Comments -- Technological Change -- Growth, Prices, and Welfare Note continued: Global Insights 10.1 The Dutch Disease -- International Flows of Factors -- Labor -- Capital -- Economic Analysis -- Global Insights 10.2 U.S. Outsourcing -- Summary -- Exercises -- References -- ch. 11 The Balance of Payments -- Introduction to Balance-of-Payments Accounting -- Current Account Entries -- Financial Accounts Entries -- Measures of the Balance of Payments -- Current Account Balance -- Global Insights 11.1 Is the U.S. Current Account Deficit Sustainable? -- Official Settlements Balance -- Transactions Classifications -- Balance-of-Payments Equilibrium and Adjustment -- Summary -- Exercises -- References -- ch. 12 The Foreign-Exchange Market -- Spot Rates -- Global Insights 12.1 Exchange Rate Indexes -- Forward Rates -- Arbitrage -- The Futures Market -- Foreign Currency Options -- The Foreign Exchange Market and the Balance of Payments (BOP) -- Summary -- Exercises -- References -- ch. 13 International Monetary Systems Note continued: The Gold Standard: 1880 -- 1914 -- The Interwar Period: 1918 -- 1939 -- The Bretton Woods System: 1944 -- 1973 -- Today's International Monetary System: 1973 -- Present -- The European Monetary System and the Euro -- The Choice of an Exchange Rate System -- Summary -- Exercises -- References -- ch. 14 Exchange Rates in the Short Run -- Exchange Rate Behavior -- Uncovered Interest Rate Parity -- Example 1 -- Example 2 -- Expected Exchange Rates and the Term Structure of Interest Rates -- Tests of Uncovered Interest Rate Parity -- Global Insights 14.1 The Carry Trade -- Summary -- Exercises -- ch. 15 Exchange Rates in the Long Run -- An Introduction to Purchasing Power Parity -- Uses of Purchasing Power Parity -- Tests of Purchasing Power Parity -- Global Insights 15.1 Big Mac PPP -- The Monetary Approach to Exchange Rates -- Summary -- Exercises -- References -- ch. 16 Theories of the Current Account -- The Elasticities Approach to the Current Account Note continued: Elasticities and J Curves -- The Currency-Contract Period -- The Pass-Through Period -- The Evidence from Devaluations -- Global Insights 16.1 The Pass-Through Effect and Profits -- The Absorption Approach -- The Intertemporal Model -- A Look at U.S. Data -- Summary -- Exercises -- References -- ch. 17 Open-Economy Macroeconomics -- Modeling the Macroeconomy -- Example 1 -- Internal External Balance -- International Policy Coordination -- Global Insights 17.1 The Plaza Agreement -- Global Insights 17.2 The G20 -- Summary -- Exercises -- Appendix 17.1 The Mundell-Fleming Model -- The IS Curve -- The LM Curve -- The BP Curve -- Equilibrium -- Monetary Policy under Fixed Exchange Rates -- Fiscal Policy under Fixed Exchange Rates -- Monetary Policy under Floating Exchange Rates -- Fiscal Policy under Floating Exchange Rates -- References -- ch. 18 International Banking, Debt, and Risk -- The Origins of Offshore Banking Note continued: Global Insights 18.1 A Black Swan in the Financial Market -- International Banking Facilities -- Offshore Banking Practices -- Examlple -- International Debt -- Global Insights 18.2 The Eurozone Crisis -- IMF Conditionality -- The Role of Corruption -- Country-Risk Analysis -- Summary -- Exercises -- References. An accessible, comprehensive and relevant guide to studying international economics.

An Introduction to International Trade; Tools of Analysis for International Trade Models; The Classical Model of International Trade; The Heckscher-Ohlin Model; Tests of Trade Models: The Leontief Paradox and Its Aftermath; Tariffs; Nontariff Barriers and Arguments for Protection; Commercial Policy: History and Practice; Preferential Trade Arrangements; International Trade and Economic Growth; An Introduction to International Finance; The Balance of Payments; The Foreign-Exchange Market; Prices and Exchange Rates: Purchasing Power Parity; Exchange Rates, Interest Rates, and Interest Parity; Foreign-Exchange Risk, Forecasting, and International Investment; Basic Theories of the Balance of Payments; Exchange Rate Theories; Alternative International Monetary Standards; International Banking, Debt, and Risk; Open-Economy Macroeconomic Policy and Adjustment

For readers interested in understanding international economics.

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. 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 readers'attention and equips them with a practical understanding of major policy questions.