Table of Contents

1. Introduction
2. World Trade: An Overview
3. Labor Productivity and Comparative Advantage: The Ricardian Model
4. Specific Factors and Income Distribution
5. Resources and Trade: The Heckscher-Ohlin Model
6. The Standard Trade Model
7. External Economies of Scale and the International Location of Production
8. Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises
9. The Instruments of Trade Policy
10. The Political Economy of Trade Policy
11. Trade Policy in Developing Countries
12. Controversies in Trade Policy
13. National Income Accounting and the Balance of Payments
14. Exchange Rates and the Foreign Exchange Market: An Asset Approach
15. Money, Interest Rates, and Exchange Rates
16. Price Levels and the Exchange Rate in the Long Run
17. Output and the Exchange Rate in the Short Run
18. Fixed Exchange Rates and Foreign Exchange Intervention
19. International Monetary Systems: An Historical Overview
20. Financial Globalization: Opportunity and Crisis
21. Optimum Currency Areas and the Euro
22. Developing Countries: Growth, Crisis, and Reform