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Table of Contents
Preface v
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
