Front Matter

Front Matter Introduction

About the Authors

Acknowledgments

Chapter 1: Trade in the Global Economy

Chapter Introduction

1 International Trade

2 Migration and Foreign Direct Investment

3 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

NETWORK

Chapter 2: Trade and Technology: The Ricardian Model

Chapter Introduction

1 Reasons for Trade

2 Ricardian Model

3 Determining the Pattern of International Trade

4 Solving for International Prices

5 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

Chapter 3: Gains and Losses from Trade in the Specific-Factors Model

Chapter Introduction

1 Specific-Factors Model

2 Earnings of Labor

3 Earnings of Capital and Land

4 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

NETWORK

Chapter 4: Trade and Resources: The Heckscher-Ohlin Model

Chapter Introduction

1 Heckscher-Ohlin Model

2 Testing the Heckscher-Ohlin Model

3 Effects of Trade on Factor Prices

4 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

NETWORK

Chapter 5: Movement of Labor and Capital Between Countries

Chapter Introduction

1 Movement of Labor Between Countries: Migration

2 Movement of Capital Between Countries: Foreign Direct Investment

3 Gains from Labor and Capital Flows

4 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

NETWORK

Chapter 6: Increasing Returns to Scale and Monopolistic Competition

Chapter Introduction

1 Basics of Imperfect Competition

2 Trade Under Monopolistic Competition

3 The North American Free Trade Agreement

4 Intra-Industry Trade and the Gravity Equation

5 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

NETWORK

Chapter 7: Offshoring of Goods and Services

Chapter Introduction

1 A Model of Offshoring

2 The Gains from Offshoring

3 The Politics and Future of Offshoring

4 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

Chapter 8: Import Tariffs and Quotas Under Perfect Competition

Chapter Introduction

1 A Brief History of the World Trade Organization

2 Gains from Trade

3 Import Tariffs for a Small Country

4 Import Tariffs for a Large Country

5 Import Quotas

6 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

NETWORK

Chapter 9: Import Tariffs and Quotas Under Imperfect Competition

Chapter Introduction

1 Tariffs and Quotas with Home Monopoly

2 Tariffs with Foreign Monopoly

3 Dumping

4 Policy Response to Dumping

5 Infant Industry Protection

6 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

Chapter 10: Export Policies in Resource and High-Technology Industries

Chapter Introduction

1 WTO Goals on Agricultural Export Subsidies

2 Export Subsidies in a Small Home Country

3 Export Subsidies in a Large Home Country

4 Production Subsidies

5 Export Tariff

6 Export Quotas

7 High-Technology Export Subsidies

8 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

Chapter 11: International Agreements: Trade, Labor, and the Environment

Chapter Introduction

1 International Trade Agreements

2 International Agreements on Labor Issues

3 International Agreements on the Environment

4 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

NETWORK

Chapter 12: The Global Economy

Chapter Introduction

1 Foreign Exchange: Currencies and Crises

2 Globalization of Finance: Debts and Deficits

3 Government and Institutions: Policies and Performance

4 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

Chapter 13: Introduction to Exchange Rates and the Foreign Exchange Market

Chapter Introduction

1 Exchange Rate Essentials

2 Exchange Rates in Practice

3 The Market for Foreign Exchange

4 Arbitrage and Spot Exchange Rates

5 Arbitrage and Interest Rates

6 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

NETWORK

NETWORK

Chapter 14: Exchange Rates I: The Monetary Approach in the Long Run

Chapter Introduction

1 Exchange Rates and Prices in the Long Run: Purchasing Power Parity and Goods Market Equilibrium

2 Money, Prices, and Exchange Rates in the Long Run: Money Market Equilibrium in a Simple Model

3 The Monetary Approach: Implications and Evidence

4 Money, Interest Rates, and Prices in the Long Run: A General Model

5 Monetary Regimes and Exchange Rate Regimes

6 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

NETWORK

Chapter 15: Exchange Rates II: The Asset Approach in the Short Run

Chapter Introduction

1 Exchange Rates and Interest Rates in the Short Run: UIP and FX Market Equilibrium

2 Interest Rates in the Short Run: Money Market Equilibrium

3 The Asset Approach: Applications and Evidence

4 A Complete Theory: Unifying the Monetary and Asset Approaches

5 Fixed Exchange Rates and the Trilemma

6 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

NETWORK

Chapter 16: National and International Accounts: Income, Wealth, and the Balance of Payments

Chapter Introduction

1 Measuring Macroeconomic Activity: An Overview

2 Income, Product, and Expenditure

3 The Balance of Payments

4 External Wealth

5 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

NETWORK

NETWORK

Appendix To Chapter 16

Chapter 17: Balance of Payments I: The Gains from Financial Globalization

Chapter Introduction

1 The Limits on How Much a Country Can Borrow: The Long-Run Budget Constraint

2 Gains from Consumption Smoothing

3 Gains from Efficient Investment

4 Gains from Diversification of Risk

5 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

NETWORK

Appendix To Chapter 17

Chapter 18: Balance of Payments II: Output, Exchange Rates, and Macroeconomic Policies in the Short Run

Chapter Introduction

1 Demand in the Open Economy

2 Goods Market Equilibrium: The Keynesian Cross

3 Goods and Forex Market Equilibria: Deriving the IS Curve

4 Money Market Equilibrium: Deriving the LM Curve

5 The Short-Run IS-LM-FX Model of an Open Economy

6 Stabilization Policy

7 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

Appendix 1 To Chapter 18

Appendix 2 To Chapter 18

Chapter 19: Fixed Versus Floating: International Monetary Experience

Chapter Introduction

1 Exchange Rate Regime Choice: Key Issues

2 Other Benefits of Fixing

3 Fixed Exchange Rate Systems

4 International Monetary Experience

5 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

NETWORK

NETWORK

Chapter 20: Exchange Rate Crises: How Pegs Work and How They Break

Chapter Introduction

1 Facts About Exchange Rate Crises

2 How Pegs Work: The Mechanics of a Fixed Exchange Rate

3 How Pegs Break I: Inconsistent Fiscal Policies

4 How Pegs Break II: Contingent Monetary Policies

5 Conclusions

KEY POINTS

KEY TERMS

PROBLEMS

Chapter 21: The Euro

Chapter Introduction

1 The Economics of the Euro

2 The History and Politics of the Euro

3 Eurozone Tensions in Tranquil Times, 1999-2007

4 The Eurozone in Crisis, 2008-2013

5 Conclusions: Assessing the Euro

KEY POINTS

KEY TERMS

PROBLEMS

NETWORK

Chapter 22: Topics in International Macroeconomics

Chapter Introduction

1 Exchange Rates in the Long Run: Deviations from Purchasing Power Parity

2 Exchange Rates in the Short Run: Deviations from Uncovered Interest Parity

3 Debt and Default

4 The Global Macroeconomy and the 2007-2013 Crisis

KEY POINTS

KEY TERMS

PROBLEMS

NETWORK