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PART I. INTRODUCTION AND INSTITUTIONS Table of Contents
Chapter 1. The United States in a Global Economy
Introduction: The Re-Emergence of International Economic Integration
Globalization in Perspective
Twelve Issues in the International Economy
Chapter 2. International Economic Institutions since World War II
Introduction: International Institutions and Issues since World War II
The IMF, the World Bank, and the WTO
Regional Trade Agreements
The Role of International Economic Institutions
Criticism of International Institutions
PART II. INTERNATIONAL TRADE
Chapter 3. Comparative Advantage and the Gains from Trade
Introduction: Absolute Advantage and the Gains from Trade
Comparative Productivity Advantage and the Gains from Trade
The Production Possibilities Curve
Absolute and Comparative Productivity Advantage Contrasted
Gains from Trade with No Absolute Advantage
Comparative Advantage and “Competitiveness”
Economic Restructuring
Chapter 4. Comparative Advantage and Factor Endowments
Introduction: The Determinants of Comparative Advantage
Modern Trade Theory
Trade and Income Distribution
Empirical Tests of the Theory of Comparative Advantage
Extension of the Heckscher-Ohlin Model
The Impact of Trade on Wages and Jobs
Chapter 5. Beyond Comparative Advantage
Introduction: More Reasons to Trade
Intraindustry Trade
Trade and Geography
Industrial Policy
U.S. Industrial Policies
Chapter 6. The Theory of Tariffs and Quotas
Introduction: The Impact of Tariffs
Analysis of Quotas
Chapter 7. Commercial Policy
Introduction: Commercial Policy and Jobs
Protection in the European Union, Japan, and the United States
Why Nations Protect Their Industries
The Politics of Protection in the United States
Chapter 8. International Trade and Labor and Environmental Standards
Introduction: Income and Standards
Setting Standards: Harmonization, Mutual Recognition, or Separate?
Labor Standards
Trade and the Environment
Alternatives to Trade Measures
PART III. INTERNATIONAL FINANCE
Chapter 9. Trade and the Balance of Payments
Introduction: The Current Account
Introduction to the Financial and Capital Accounts
The Current Account and the Macroeconomy
International Debt
The International Investment Position
Chapter 10. Exchange Rates and Exchange Rate Systems
Introduction: Fixed, Flexible, or In-Between?
Exchange Rates and Currency Trading
The Supply and Demand for Foreign Exchange
The Real Exchange Rate
Alternatives to Flexible Exchange Rates
Fixed Exchange Rate Systems
Choosing the Right Exchange Rate System
Single Currency Areas
Chapter 11. An Introduction to Open Economy Macroeconomics
Introduction: The Macroeconomy in a Global Setting
Aggregate Demand and Aggregate Supply
Fiscal and Monetary Policies
Current Account Balances Revisited
Macro Policies for Current Account Imbalances
Macroeconomic Policy Coordination in Developed Countries
Chapter 12. International Financial Crises
Introduction: The Challenge to Financial Integration
Definition of a Financial Crisis
Two Types of International Financial Crises
Domestic Issues in Crisis Avoidance
Domestic Policies for Crisis Management
Reform of the International Financial Architecture
PART IV. REGIONAL ISSUES IN THE GLOBAL ECONOMY
Chapter 13. Economic Integration in North America
Introduction: Expanding Economic Relations
Economic and Demographic Characteristics of North America
The Canada-U.S. Trade Relationship
Recent Mexican Economic History
The North American Free Trade Agreement (NAFTA)
The NAFTA Debate in the United States
Jobs, Politics, and the Future
Chapter 14. The European Union: Many Markets into One
Introduction: The European Union
The Size of the European Market
Before the European Union
Deepening and Widening the Community in the 1970s and 1980s
The Second Wave of Deepening: The Single European Act
The Third Wave of Deepening: The Maastricht Treaty
Monetary Union and the Euro
Widening the European Union
The Demographic Challenge of the Future
Chapter 15. Trade and Policy Reform in Latin America
Introduction: Defining a “Latin American” Economy
Population, Income, and Economic Growth
Import Substitution Industrialization
Macroeconomic Instability and Economic Populism
The Debt Crisis of the 1980s
Economic Policy Reform and the “Washington Consensus”
Chapter 16. Export-Oriented Growth in East Asia
Introduction: The High-Performance Asian Economies
Population, Income, and Economic Growth
General Characteristics of Growth in the HPAEs
The Institutional Environment
The Role of Industrial Policies
The Role of Manufactured Exports
Is There an Asian Model of Economic Growth?
Chapter 17. China and India in the World Economy
Introduction: The Challenges of Openness
Demographic and Economic Characteristics
China and India in the World Economy
The Challenges of India and China in the World Economy
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