International Economics, 11th Edition
January 2013, ©2013
International Economics by Dominick Salvatore, presents a comprehensive, up-to-date, and clear exposition of the theory and principles of international economics. Salvatore presents concepts that are essential for understanding, evaluating, and suggesting solutions to the important international economic problems and issues facing the United States and the world in this age of globalization.
Neither overly complex nor too simplistic, International Economics helps students see the immediate relevance and importance of the material and contains an unparalleled number of real-world applications and examples.
1 Introduction 1
Part 1 International Trade Theory
2 The Law of Comparative Advantage 31
3 The Standard Theory of International Trade 57
4 Demand and Supply, Offer Curves, and the Terms of Trade 85
5 Factor Endowments and the Heckscher–Ohlin Theory 109
6 Economies of Scale, Imperfect Competition, and International Trade 157
7 Economic Growth and International Trade 189
Part 2 International Trade Policy
8 Trade Restrictions: Tariffs 221
9 Nontariff Trade Barriers and the New Protectionism 257
10 Economic Integration: Customs Unions and Free Trade Areas 301
11 International Trade and Economic Development 331
12 International Resource Movements and Multinational Corporations 367
Part 3 The Balance of Payments, Foreign Exchange Markets, and Exchange Rates
13 Balance of Payments 397
14 Foreign Exchange Markets and Exchange Rates 423
15 Exchange Rate Determination 463
Part 4 Open-Economy Macroeconomics and the International Monetary System
16 The Price Adjustment Mechanism with Flexible and Fixed Exchange Rates 507
17 The Income Adjustment Mechanism and Synthesis of Automatic Adjustments 541
18 Open-Economy Macroeconomics: Adjustment Policies 573
19 Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply 617
20 Flexible versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination 645
21 The International Monetary System: Past, Present, and Future 687
Glossary of Key Terms 729
Name Index 743
Subject Index 751
- New topics reflect changing trends in world economy, including:
- Effects of scarcity, environmental degradation, and climate change and how it affects the global market.
- Suggests solutions to the important international economic problems, including what students and teachers can do to help.
- Chapters reflect today’s dramatic economic and financial changes and how these problems can be resolved.
- Reflects major imbalances due to globalization and examines the danger of the economic crisis in emerging nations through case studies.
- All the principles and theories are presented on an intuitive level in the text and then more rigorously in the optional appendices.
- The same basic graphical and numerical model is utilized in all the trade chapters and another one in all the finance chapters. This makes learning easier and increases students' understanding.
- 118 real-world case studies deepen understanding and show the relevance of principles and theories. There are four to ten in each chapter.
- Actual numbers are used in the examples and graphs are presented on scales for easier comprehension.
- There is a full range of learning aids: each chapter ends with a summary, a look ahead, key terms, questions for review, problems, selected bibliography, and Internet exercises. There is also a website and a student study guide.