International Economics

Cover
Title Page
Copyright
Dedication
Brief Contents
Contents
Preface
Part 1: Introduction and Institutions
	Chapter 1. An Introduction to the World Economy
		Introduction: International Economic Integration
		Elements of International Economic Integration
			The Growth of World Trade
			Capital and Labor Mobility
			Features of Contemporary International Economic Relations
			Trade and Economic Growth
		Twelve Themes in International Economics
			The Gains from Trade and New Trade Theory (Chapters 3, 4, and 5)
			Wages, Jobs, and Protection (Chapters 3, 6, 7, and 8)
			Trade Deficits (Chapters 9, 11, and 12)
			Regional Trade Agreements (Chapters 2, 13, and 14)
			The Resolution of Trade Conflicts (Chapters 2, 7, and 8)
			The Role of International Institutions (Chapters 2, 8, and 12)
			Exchange Rates and the Macroeconomy (Chapters 10 and 11)
			Financial Crises and Global Contagion (Chapter 12)
			Capital Flows and the Debt of Developing Countries (Chapters 2, 9, and 12)
			Latin America and the World Economy (Chapter 15)
			Export-Led Growth in East Asia (Chapter 16)
			China and India in the World Economy (Chapter 17)
		What Do International Economists Do?
		Vocabulary
		Review Questions
	Chapter 2. International Economic Institutions Since World War II
		Introduction: International Institutions and Issues Since World War II
			International Institutions
			A Taxonomy of International Economic Institutions
		The IMF, the World Bank, and the WTO
			The IMF and World Bank
			The GATT, the Uruguay Round, and the WTO
			Case Study: The GATT Rounds
		Regional Trade Agreements
			Five Types of Regional Trade Agreements
			Case Study: Prominent Regional Trade Agreements
			Regional Trade Agreements and the WTO
			For and Against RTAs
		The Role of International Economic Institutions
			The Definition of Public Goods
			Maintaining Order and Reducing Uncertainty
			Case Study: Bretton Woods
		Criticism of International Institutions
			Sovereignty and Transparency
			Ideology
			Implementation and Adjustment Costs
			Case Study: China’s Alternative to the IMF and World Bank: The AIIB
		Summary
		Vocabulary
		Review Questions
Part 2: International Trade
	Chapter 3. Comparative Advantage and the Gains from Trade
		Introduction: The Gains from Trade
			Adam Smith and the Attack on EconomicNationalism
			A Simple Model of Production and Trade
			Absolute Productivity Advantage and the Gains from Trade
			Case Study: Gains from Trade in Nineteenth-Century Japan
		Comparative Productivity Advantage and the Gains from Trade
			The Production Possibilities Curve
			Relative Prices
			The Consumption Possibilities Curve
			The Gains from Trade
			Domestic Prices and the Trade Price
		Absolute and Comparative Productivity Advantage Contrasted
		Gains from Trade with No Absolute Advantage
			Case Study: Changing Comparative Advantage in the Republic of Korea, 1960–2010
		Comparative Advantage and “Competitiveness”
		Economic Restructuring
			Case Study: Losing Comparative Advantage
		Summary
		Vocabulary
		Review Questions
	Chapter 4. Comparative Advantage and Factor Endowments
		Introduction: The Determinants of Comparative Advantage
		Modern Trade Theory
			The HO Trade Model
			Gains from Trade in the HO Model
		Trade and Income Distribution
			The Stolper-Samuelson Theorem
			The Specific Factors Model
			Case Study: Comparative Advantage in a Single Natural Resource
		Empirical Tests of the Theory of Comparative Advantage
		Extensions of the HO Model
			The Gravity Model
			The Product Cycle
			Case Study: United States–China Trade
			Foreign Trade Versus Foreign Investment
			Off-Shoring and Outsourcing
			Case Study: Mexico’s Participation in Global Value Chains
		The Impact of Trade on Wages and Jobs
			Case Study: Do Trade Statistics Give a Distorted Picture of Trade Relations? The Case of the iPhone 3G
		Migration and Trade
		Summary
		Vocabulary
		Review Questions
	Chapter 5. Beyond Comparative Advantage
		Introduction: More Reasons to Trade
		Intraindustry Trade
			Characteristics of Intraindustry Trade
			The Gains from Intraindustry Trade
			Case Study: United States and Canada Trade
		Trade and Geography
			Geography, Transportation Costs, and Internal Economics of Scale
			Case Study: The Shifting Geography of Mexico’s Manufacturing
			External Economies of Scale
			Trade and External Economies
		Industrial Policy
			Industrial Policies and Market Failure
			Industrial Policy Tools
			Case Study: Clean Energy and Industrial Policy
			Problems with Industrial Policies
			Case Study: Do WTO Rules Prohibit Industrial Policies?
		Summary
		Vocabulary
		Review Questions
	Chapter 6. The Theory of Tariffs and Quotas
		Introduction: Tariffs and Quotas
			Analysis of a Tariff
			Consumer and Producer Surplus
			Prices, Output, and Consumption
			Resource Allocation and Income Distribution
			Case Study: A Comparison of Tariff Rates
			Other Potential Costs
			The Large Country Case
		Effective Versus Nominal Rates of Protection
			Case Study: The Uruguay and Doha Rounds
		Analysis of Quotas
			Types of Quotas
			The Effect on the Profits of Foreign Producers
		Hidden Forms of Protection
			Case Study: Intellectual Property Rights and Trade
		Summary
		Vocabulary
		Review Questions
	Chapter 7. Commercial Policy
		Introduction: Commercial Policy, Tariffs, and Arguments for Protection
		Tariff Rates in The World’s Major Traders
		The Costs of Protectionism
			The Logic of Collective Action
			Case Study: Agricultural Subsidies
		Why Nations Protect Their Industries
			Revenue
			The Labor Argument
			The Infant Industry Argument
			The National Security Argument
			The Cultural Protection Argument
			The Retaliation Argument
			Case Study: National Security Protection and the WTO
		The Politics of Protection in the United States
			Antidumping Duties
			Countervailing Duties
			Escape Clause Relief
			Section 301
			National Security Protection
			Case Study: Economic Sanctions
		Summary
		Vocabulary
		Review Questions
	Chapter 8. International Trade and Labor and Environmental Standards
		Introduction: Income and Standards
		Setting Standards: Harmonization, Mutual Recognition, or Separate?
		Labor Standards
			Defining Labor Standards
			Case Study: Child Labor
			Labor Standards and Trade
			Evidence on Low Standards as a Predatory Practice
			Case Study: The International Labour Organization
		Trade and the Environment
			Transboundary and Nontransboundary Effects
			Case Study: Trade Barriers and Endangered Species
		Alternatives to Trade Measures
			Labels for Exports
			Requiring Home Country Standards
			Increasing International Negotiations
			Case Study: Global Climate Change
		Summary
		Vocabulary
		Review Questions
Part 3. International Finance
	Chapter 9. Trade and the Balance of Payments
		Introduction: The Current Account
			The Trade Balance
			The Current and Capital Account Balances
		Introduction to the Financial Account
			Types of Financial Flows
			Limits on Financial Flows
			Case Study: The Crisis of 2007–2009 and the Balance of Payments
		The Current Account and the Macroeconomy
			The National Income and Product Accounts
			National Savings and Current Account Balances
			Are Current Account Deficits Harmful?
			Case Study: Current Account Deficits in the United States
		International Debt
			Case Study: Odious Debt
		The International Investment Position
		Summary
		Vocabulary
		Review Questions
		Appendix A: Measuring the International Investment Position
		Appendix B: Balance of Payments Data
			Bureau of Economic Analysis
			International Financial Statistics
			Balance of Payments Statistics
		Appendix C: A Note on Numbers
	Chapter 10. Exchange Rates and Exchange Rate Systems
		Introduction: Fixed, Flexible, or In Between?
		Exchange Rates and Currency Trading
			Reasons for Holding Foreign Currencies
			Institutions
			Exchange Rate Risk
		The Supply and Demand for Foreign Exchange
			Supply and Demand with Flexible Exchange Rates
			Exchange Rates in the Long Run
			Exchange Rates in the Medium Run and Short Run
			Case Study: The Largest Market in the World
		Fixed Exchange Rates
			Case Study: The End of the Bretton Woods System
		The Real Exchange Rate
			Case Study: The Collapse of Thailand’s Currency, 1997–1998
		Choosing the Right Exchange Rate System
			Case Study: Monetary Unions
			Single Currency Areas
			Conditions for Adopting a Single Currency
		Summary
		Vocabulary
		Review Questions
		Appendix: The Interest Rate Parity Condition
	Chapter 11. An Introduction to Open Economy Macroeconomics
		Introduction: The Macroeconomy in a Global Setting
		Aggregate Demand and Aggregate Supply
		Fiscal and Monetary Policies
			Fiscal Policy
			Monetary Policy
			Case Study: Fiscal and Monetary Policy during the Great Depression
		Current Account Balances Revisited
			Fiscal and Monetary Policies, Interest Rates, and Exchange Rates
			Fiscal and Monetary Policy and the Current Account
			The Long Run
			Case Study: Argentina and the Limits to Macroeconomic Policy
		Macro Policies for Current Account Imbalances
			The Adjustment Process
			Case Study: The Adjustment Process in the United States
		Macroeconomic Policy Coordination in Developed Countries
		Summary
		Vocabulary
		Review Questions
	Chapter 12. International Financial Crises
		Introduction: The Challenge to Financial Integration
		Definition of a Financial Crisis
		Vulnerabilities, Triggers, and Contagion
			Vulnerability: Economic Imbalances
			Vulnerability: Volatile Capital Flows
			How Crises Become International: Contagion
			Case Study: The Mexican Peso Crisis of 1994 and 1995
		Issues in Crisis Prevention
			Moral Hazard and Financial Sector Regulation
			Exchange Rate Policy
			Capital Controls
			Case Study: The Asian Crisis of 1997 and 1998
			Policies for Crisis Management
		Reform of the International Financial Architecture
			The Role of the IMF
			Transparency and Private Sector Coordination
			Case Study: The Global Crisis of 2007
		Summary
		Vocabulary
		Review Questions
Part 4: Regional Issues in the Global Economy
	Chapter 13. The United States in the World Economy
		Introduction: A Changing World Economy
		Background and Context
			The Shifting Focus of U.S. Trade Relations
			Case Study: Manufacturing in the United States
		The NAFTA Model
			Demographic and Economic Characteristics of North America
			Canada–U.S. Trade Relations
			Mexican Economic Reforms
			The North American Free Trade Agreement
			Case Study: North America’s Automotive Value Chain
		Trade Initiatives and Preferential Agreements
			Case Study: The African Growth and Opportunity Act
		Jobs and Trade Agreements
			Case Study: The Gravitational Pull of the U.S. Economy
		Summary
		Vocabulary
		Review Questions
	Chapter 14. The European Union: Many Markets into One
		Introduction: The European Union
		The Size of the European Market
		The European Union and Its Predecessors
			The Treaty of Rome
			Institutional Structure
		Deepening and Widening the Community in the 1970s and 1980s
			Before the Euro
		The Second Wave of Deepening: The Single European Act
			Case Study: The Schengen Agreement
			The Delors Report
			Forecasts of the Gains from the Single European Act
			Problems in the Implementation of the SEA
			Case Study: The Erasmus+Program and Higher Education
		The Third Wave of Deepening: The Maastricht Treaty
			Monetary Union and the Euro
			Costs and Benefits of Monetary Union
			The Political Economy of the Euro
			Case Study: The Financial Crisis of 2007–2009 and the Euro
		Widening the European Union
			New Members
			Case Study: The United Kingdom Leaves the European Union
		Future Challenges
		Summary
		Vocabulary
		Review Questions
	Chapter 15. Trade and Policy Reform in Latin America
		Introduction: Defining a “Latin American” Economy
		Population, Income, and Economic Growth
		Import Substitution Industrialization
			Origins and Goals of ISI
			Criticisms of ISI
			Case Study: ISI in Mexico
		Macroeconomic Instability and Economic Populism
			Populism in Latin America
			Case Study: Economic Populismin Peru, 1985–1990
		The Debt Crisis of the 1980s
			Proximate Causes of the Debt Crisis
			Responses to the Debt Crisis
		Neoliberal Policy Reform and the Washington Consensus
			Stabilization Policy to Control Inflation
			Structural Reform and Open Trade
			Case Study: Regional Trade Blocsin Latin America
			The Next Generation of Reforms
			Case Study: The Chilean Model
		Summary
		Vocabulary
		Review Questions
	Chapter 16. Export-Oriented Growth in East Asia
		Introduction: High-Growth Asian Economies
		Population, Income, and Economic Growth
			A Note on Hong Kong and Taiwan
		General Characteristics of Growth
			Shared Growth
			Rapid Accumulation of Physical and Human Capital
			Rapid Growth of Manufactured Exports
			Stable Macroeconomic Environments
		The Institutional Environment
			Case Study: Worldwide Governance Indicators
			Fiscal Discipline and Business–Government Relations
			Case Study: Doing Business in the Export Oriented Asian Economies
			Avoiding Rent Seeking
			Case Study: Were East Asian Economies Open?
		The Role of Industrial Policies
			Targeting Specific Industries
			Did Industrial Policies Work?
			Case Study: HCI in Korea
		The Role of Manufactured Exports
			The Connections between Growth and Exports
			Is Export Promotion a Good Model for Other Regions?
			Case Study: Asian Trade Blocs
		Is There an Asian Model of Economic Growth?
		Summary
		Vocabulary
		Review Questions
	Chapter 17. China and India in the World Economy
		Introduction: New Challenges
		Demographic and Economic Characteristics
		Economic Reforms in China and India
			The Reform Process in China
			Indian Economic Reforms
			Shifting Comparative Advantages
			Case Study: Why Did the USSR Collapse and China Succeed?
		China and India in the World Economy
			Chinese and Indian Trade Patterns
			Tariffs and Protection
			Current Account Balances
			Looking Forward
		Difficult Issues
			Services
			Manufacturing
			Resources
			Multilateral Institutions
			Unresolved Issues
			Conflict or Collaboration?
		Summary
		Vocabulary
		Review Questions
Glossary
Index
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