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To our parents
Brief Contents
PART 1 Introduction to International PART 5 Exchange Rates
Economics Chapter 10 Introduction to Exchange Rates and
Chapter 1 The Global Economy 1 the Foreign Exchange Market 337
Chapter 11 Exchange Rates I: The Monetary
PART 2 Patterns of International Trade Approach in the Long Run 375
Chapter 2 Trade and Technology: The Ricardian Chapter 12 Exchange Rates II: The Asset
Model 29 Approach in the Short Run 423
Chapter 3 Gains and Losses from Trade in the
Specific-Factors Model 61 PART 6 The Balance of Payments
Chapter 4 Trade and Resources: The Chapter 13 National and International Accounts:
Heckscher-Ohlin Model 89 Income, Wealth, and the Balance of
Payments 469
Chapter 5 Movement of Labor and Capital
between Countries 125 Chapter 14 Output, Exchange Rates, and
Macroeconomic Policies in the
PART 3 New Explanations for International Short Run 511
Trade
PART 7 Applications and Policy Issues
Chapter 6 Increasing Returns to Scale and
Monopolistic Competition 167 Chapter 15 Fixed Versus Floating: International
Monetary Experience 563
PART 4 International Trade Policies Chapter 16 The Euro 605
Chapter 7 Import Tariffs and Quotas Under Index I-1
Perfect Competition 199
Chapter 8 Import Tariffs and Quotas Under
Imperfect Competition 245
Chapter 9 International Agreements: Trade,
Labor, and the Environment 293
vii �
Contents
Preface xxii
3 International Macroeconomics 14
Foreign Exchange: Currencies and Crises 14
HEADLINES Economic Crisis in Iceland 16
Globalization of Finance: Debts and Deficits 17
Government and Institutions: Policies and Performance 20
4 Conclusions 23
2 Ricardian Model 35
The Home Country 35
The Foreign Country 39
� viii
CONTENTS ix
5 Conclusions 55
Key Points, Key Terms, and Problems
2 Earnings of Labor 68
Determination of Wages 68
Change in Relative Price of Manufactures 70
APPLICATION Manufacturing and Services in the United States:
Employment and Wages across Sectors 73
APPLICATION Trade Adjustment Assistance Programs: Financing the
Adjustment Costs of Trade 75
4 Conclusions 84
HEADLINES Rise in Coffee Prices—Great for Farmers,
Tough on Co-ops 85
Key Points, Key Terms, and Problems
x CONTENTS
4 Conclusions 121
Key Points, Key Terms, and Problems
4 Conclusions 162
Key Points, Key Terms, and Problems
5 Conclusions 195
Key Points, Key Terms, and Problems
xii CONTENTS
6 Conclusions 238
Key Points, Key Terms, and Problems
3 Dumping 262
Numerical Example of Dumping 264
6 Conclusions 286
Key Points, Key Terms, and Problems
4 Conclusions 330
HEADLINES Dismal Outcome at Copenhagen Fiasco 361
Key Points, Key Terms, and Problems
6 Conclusions 368
Key Points, Key Terms, and Problems
6 Conclusions 416
Key Points, Key Terms, and Problems
6 Conclusions 460
APPLICATION News and the Foreign Exchange Market in
Wartime 460
Key Points, Key Terms, and Problems
5 Conclusions 503
SIDE BAR Beware of Greeks Bearing Statistics 503
Key Points, Key Terms, and Problems
7 Conclusions 554
Key Points, Key Terms, and Problems
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Language: English
Nask went off to the kasser dispenser and his place was taken by
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"Un-edge yourself, Sprim," smiled Brif, contracting one of his heads.
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Laughing together, the earthers went back into the Customs Lounge.
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