Table of Contents
1 Introduction 1
PART 1 INTERNATIONAL TRADE THEORY
2 The Law of Comparative Advantage 29
3 The Standard Theory of International Trade 53
4 Demand and Supply, Offer Curves, and the Terms of Trade 79
5 Factor Endowments and the Heckscher–Ohlin Theory 101
6 Economies of Scale, Imperfect Competition, and International Trade 141
7 Economic Growth and International Trade 169
PART 2 INTERNATIONAL TRADE POLICY
8 Trade Restrictions: Tariffs 197
9 Nontariff Trade Barriers and the New Protectionism 227
10 Economic Integration: Customs Unions and Free Trade Areas 263
11 International Trade and Economic Development 287
12 International Resource Movements and Multinational Corporations 317
PART 3 THE BALANCE OF PAYMENTS, FOREIGN EXCHANGE MARKETS, AND EXCHANGE RATES
13 Balance of Payments 345
14 Foreign Exchange Markets and Exchange Rates 365
15 Exchange Rate Determination 401
PART 4 OPEN-ECONOMY MACROECONOMICS AND THE INTERNATIONAL MONETARY SYSTEM
16 The Price Adjustment Mechanism with Flexible and Fixed Exchange Rates 437
17 The Income Adjustment Mechanism and Synthesis of Automatic Adjustments 465
18 Open Economy Macroeconomics: Adjustment Policies 493
19 Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply 531
20 Flexible versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination 555
21 The International Monetary System: Past, Present, and Future 589
Answers to Selected Problems On Web
Glossary of Key Terms 623
Name Index 637
Subject Index 641
