Introduction to International Economics, 3rd Edition
October 2011, ©2012
The text presents students with an introduction to the field of international economics using real-world case studies while pointing out to the student the relevance and importance of studying international economics. The text seeks to explain how the world economy works, the major benefits that it provides to people and nations, and the most serious problems that it faces, all in a clear and realistic way that students with a limited background in economics can understand.
By covering the topics essential to an understanding of the global economy, this text is easily accessible for economics, business, and political science majors, alike. For any international economics course, Salvatore's 3rd edition takes the students' understanding of economics well beyond the classroom and across the globe.
PART ONE: INTERNATIONAL TRADE THEORY 29
2. Comparative Advantage 31
3. The Standard Trade Model 55
4. The Heckscher–Ohlin and Other Trade Theories 80
PART TWO: INTERNATIONAL TRADE POLICY 113
5. Trade Restrictions: Tariffs 115
6. Nontariff Trade Barriers and the Political Economy of Protectionism 137
PART THREE: INTERNATIONAL TRADE AND INVESTMENT RELATIONS 175
7. Economic Integration 177
8. Growth and Development with International Trade 200
9. International Resource Movements and Multinational Corporations 226
PART FOUR: THE BALANCE OF PAYMENTS, FOREIGN EXCHANGE MARKETS, AND EXCHANGE RATES 255
10. Balance of Payments 257
11. The Foreign Exchange Market and Exchange Rates 280
12. Exchange Rate Determination 308
PART FIVE: OPEN-ECONOMY MACROECONOMICS 331
13. Automatic Adjustments with Flexible and Fixed Exchange Rates 333
14. Adjustment Policies 362
PART SIX: THE INTERNATIONAL MONETARY SYSTEM: PAST, PRESENT, AND FUTURE 389
15. Flexible versus Fixed Exchange Rates, European Monetary Systems, and Macroeconomic
Policy Coordination 391
16. The International Monetary System: Past, Present, and Future 418
• In-depth analysis of the most serious economic problems facing the world today and an evaluation of the policy options available to deal with them.
• NEW content on the benefits and challenges of the rapid globalization of the world economy, competition from emerging markets, dollar-euro exchange rates, and the increased interdependence of world financial markets, is now included in several trade and finance sections and case studies.
• Now over 85 real-world case studies have been added or significantly revised, from economics and business.
• A graphical approach throughout the book retains the same numerical example from chapter to chapter.
• A balanced view of competing theories and policy controversies