International economics: a European focus

Cover......Page 1
International Economics......Page 2
Contents......Page 6
Foreword......Page 14
Preface......Page 16
Acknowledgements......Page 20
 Why international economics?......Page 24
 Why a European focus?......Page 26
 Overview......Page 27
Part 1 Trade theory and policy......Page 28
  Introduction......Page 30
  Objectives......Page 31
  Mercantilism......Page 32
  Adam Smith and absolute advantage......Page 33
  David Ricardo and comparative advantage......Page 36
  Opportunity cost and the pure theory of trade......Page 38
  Factor endowments......Page 41
  Testing the Ricardian and Heckscher–Ohlin models......Page 45
  The influence of the free trade doctrine......Page 48
  Key concepts......Page 50
  Suggested reading......Page 51
  Introduction......Page 52
  Technology and trade......Page 53
  Patterns of demand......Page 55
  Imperfect competition......Page 56
  Increasing returns......Page 58
  Spatial concentration and trade......Page 60
  Case study 3.1......Page 61
  Case study  3.2......Page 62
  Gravity trade models......Page 63
  Questions for discussion......Page 66
  Suggested reading......Page 67
  Introduction......Page 68
  Tariffs and non-tariff barriers......Page 70
  Exchange and capital controls as barriers to trade......Page 73
  Welfare effects of a tariff......Page 74
  ‘Old’ arguments for protection......Page 77
  External economies and research and development......Page 80
  Imperfect competition and the transfer of monopoly profit......Page 82
  Political economy of trade policy......Page 84
  Self-interest and the prisoner’s dilemma......Page 86
  Income distribution and social objectives......Page 89
  Case study 4.1......Page 90
  Case study 4.2......Page 91
  Summary......Page 92
  Key concepts......Page 93
  Suggested reading......Page 94
  Introduction......Page 95
  Objectives......Page 96
  Economic theory versus international political economy......Page 97
  From GATT to the WTO......Page 98
  The WTO......Page 100
  WTO and the environment......Page 101
  Social issues and the WTO......Page 103
  Market access......Page 105
  Case study 5.1......Page 106
  Trade blocs and the WTO......Page 107
  The EU and the WTO......Page 108
  Summary......Page 110
  Team project on the WTO......Page 111
  Suggested reading......Page 112
  Introduction......Page 113
  Static and dynamic effects of trade......Page 115
  Vent for surplus and staples theory......Page 118
  Is trade an engine of growth?......Page 121
  Trade liberalisation......Page 125
  Trade policy reform in transition economies......Page 127
  Regional trading arrangements versus liberalisation......Page 128
  Case study 6.1......Page 131
  Growth, trade and de-industrialisation......Page 133
  Summary......Page 134
  Questions for discussion......Page 135
  Suggested reading......Page 136
  Introduction......Page 137
  Objectives......Page 138
  Capital and labour flows in history......Page 139
  Theory of capital movements......Page 141
  Multinational enterprises and factor mobility......Page 143
  Europe’s foreign direct investment......Page 146
  Labour migration......Page 148
  Migration in Europe......Page 152
  Case study 7.1......Page 153
  Case study 7.2......Page 155
  Key concepts......Page 156
  Suggested reading......Page 157
Part 2 International monetary economics......Page 158
  Introduction......Page 160
  The UK balance of payments......Page 161
  The UK current account......Page 163
  The UK capital account......Page 166
  The UK financial account......Page 167
  Errors and omissions......Page 169
  The UK international investment position......Page 170
  The euro area balance of payments......Page 172
  Summary......Page 175
  Questions for discussion......Page 176
  Suggested reading......Page 177
  Introduction......Page 178
  The mechanism of international payments......Page 179
  Exchange rates, swaps, futures and options......Page 181
  The determination of the equilibrium exchange rate......Page 185
  Case study 9.1......Page 187
  Purchasing-power parities......Page 190
  Arbitrage......Page 192
  International financial flows......Page 193
  Financial markets and the foreign exchange market......Page 196
  Case study 9.2......Page 198
  Summary......Page 199
  Questions for discussion......Page 200
  Suggested reading......Page 201
  Introduction......Page 202
  The gold standard (1880–1914)......Page 203
  The Bretton Woods system (1946–71)......Page 207
  Managed flexibility......Page 210
  Case study 10.1......Page 212
  Money supply, output, inflation and the exchange rate under managed flexibility......Page 213
  The volatility of exchange rates......Page 215
  Choice of exchange rate regime......Page 216
  Case study 10.2......Page 218
  The currency board system......Page 219
  Summary......Page 221
  Suggested reading......Page 222
  Introduction......Page 224
  Case study 11.1......Page 225
  Portfolio theory and diversification......Page 227
  Financial crises......Page 229
  The crisis in Asia......Page 231
  The 1998 Russian crisis......Page 234
  Contagion......Page 235
  Herd behaviour......Page 236
  Early warning systems......Page 237
  Safety zones for emerging markets......Page 238
  Summary......Page 240
  Suggested reading......Page 241
Part 3 The global economy......Page 242
  Introduction......Page 244
  Objectives......Page 245
  Chronology of the European Union......Page 246
  The Treaty of Rome and the internal market......Page 247
  Case study 12.1......Page 248
  The European Monetary System and the Exchange Rate Mechanism......Page 249
  Case study 12.2......Page 252
  European Monetary Union......Page 253
  Case study 12.3......Page 254
  Economic management in the euro area......Page 256
  Case study 12.4......Page 260
  Case study 12.5......Page 261
  Accession countries and the euro......Page 262
  Key concepts......Page 264
  Suggested reading......Page 265
  Introduction......Page 266
  Case study 13.1......Page 269
  Timetable of transition......Page 270
  From plan to market......Page 272
  GDP levels and GDP growth levels in Europe’s transition economies......Page 276
  Poverty during the transition......Page 278
  Trade liberalisation and the exchange rate......Page 280
  Capital flows......Page 284
  Case study 13.2......Page 286
  EU accession and transition economies......Page 289
  Case study 13.3......Page 291
  Key concepts......Page 292
  Suggested reading......Page 293
  Introduction......Page 295
  The IMF......Page 297
  Reform of the IMF......Page 300
  Case study 14.1......Page 303
  The World Bank......Page 304
  The debt problem......Page 306
  Case study 14.2......Page 307
  The World Bank’s comprehensive development framework......Page 308
  The United Nations and human development......Page 309
  Key concepts......Page 313
  Suggested reading......Page 314
  Introduction......Page 315
  Global electronic commerce......Page 316
  Digitised products and intellectual property protection......Page 321
  Case study 15.1......Page 323
  The world economy offline and online......Page 324
  Money laundering and illicit trafficking......Page 327
  New biotechnology and trade......Page 329
  Case study 15.2......Page 333
  Key concepts......Page 334
  Suggested reading......Page 335
Appendix A The geometry of trade......Page 336
Appendix B Making use of the internet......Page 343
Bibliography......Page 345
Index......Page 352