International Economics

This text integrates trade theory and open economy macroeconomics with straightforward diagrams and numerous examples. The emphasis is on the gains from competitive trade and the limits of policy. Economics began with the political debate over import tariffs in England. Tariffs lead to net economic losses, except in a few circumstances, and would then lead to retaliation. Consumers and firms importing intermediate inputs lose due to tariffs, as do export industries when other countries retaliate with tariffs of their own. Import competing industries and the government gain from tariffs.

The present approach integrates theories of market behavior and general equilibrium on the microeconomic side. Exchange rate theory bridges from trade theory into balance of payments theory. In the final chapter on open economy macroeconomics, the limits of monetary and fiscal policies due to the competitive foreign exchange market is the focus.

Theoretical diagrams present the theory without assuming intermediate theory. Numerous problems for each section build confidence in applying the theory. Boxed examples illustrate the importance of theory. Each chapter includes a concise mathematical appendix that should appeal to students with interest and to instructors preparing for class.

Contents:

• Preface for Students

• Preface for Instructors

• Trade and Protectionism:

  • Markets and Comparative Advantage
  • The Gains from Trade
  • Tariffs and Protectionism
  • Terms of Trade

• Production and Trade:

  • Constant Cost Production and Trade
  • Factor Proportions Production and Trade
  • Industrial Organization and Trade

• International Economic Integration:

  • International Migration and Capital Movement
  • International Economic Integration
  • The Balance of Payments
  • Foreign Exchange Rates
  • International Money and Finance
  • Open Economy Macroeconomics

• Hints and Partial Answers

• Acronyms

• References

• Index

Readership: Undergraduates in international economics.

Dettagli