International Economics: Theory and Policy, Global Edition, 11th Edition

For courses in International Economics, International Finance, and International Trade.

A balanced approach to theory and policy applications

International Economics: Theory and Policy provides engaging, balanced coverage of the key concepts and practical applications of the two main topic areas of the discipline. For both international trade and international finance, an intuitive introduction to theory is followed by detailed coverage of policy applications. With this new Eleventh Edition, Global Edition, the author team of Nobel Prize-winning economist Paul Krugman, renowned researcher Maurice Obstfeld, and Marc Melitz of Harvard University, continues to set the standard for International Economics courses.

Reveal theory and applications of trade and finance via a unified structure

The text’s unified structure presents a balance of theoretical and practical coverage of international finance. Chapters on core theory are followed by a series of application chapters that confront policy questions using the newest empirical work, data, and policy debates. This structure enables students to grasp theoretical concepts and then see those same concepts in action, aiding retention and highlighting the relevance of course material. Highlights include:

A unified model of open-economy macroeconomics that provides students with a cohesive approach to the theory, based on an asset-market approach to exchange rate determination with expectations in a central role.

A discussion of the international monetary experience that stresses the idea that different exchange rate systems lead to different policy coordination problems.

An emphasis on the potential substitutability of international trade and international movements of factors of production, featuring an analysis of international borrowing and lending as intertemporal trade–the exchange of present consumption for future consumption.

Give students learning tools to master course material

Learning Goals list essential concepts so students understand what they need to take away from each chapter.

Case Studies illustrate theory using real-world applications and provide important historical context.

Special Boxes offer vivid illustrations of points made in the text, including the role of currency swap lines among central banks, and the rapid accumulation of foreign exchange reserves by developing countries.

200+ Captioned diagrams reinforce discussions in the text and help students in reviewing the material.

Summary and Key Terms. Each chapter closes with a summary recapping the major points to aid student review of the material.

· Problems, many of which cite real data or policies, allow students to practice what they’re learning. They range from routine computational drills to more analytical questions and problems. All end-of-chapter problems are included in MyLab™ Economics so that instructors can assign homework without needing to grade students’ work by hand.

· Further Reading sections at the end of each chapter provide annotated bibliographies of both seminal works and recent articles, encouraging students to explore the material further.

Table of Contents

Chapter 1 Introduction

PART 1 International Trade Theory
Chapter 2 World Trade: An Overview
Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model
Chapter 4 Specific Factors and Income Distribution
Chapter 5 Resources and Trade: The Heckscher-Ohlin Model
Chapter 6 The Standard Trade Model
Chapter 7 External Economies of Scale and the International Location of Production
Chapter 8 Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises

Part 2 International Trade Policy
Chapter 9 The Instruments of Trade Policy
Chapter 10 The Political Economy of Trade Policy
Chapter 11 Trade Policy in Developing Countries
Chapter 12 Controversies in Trade Policy

Part 3 Exchange Rates and Open-Economy Macroeconomics
Chapter 13 National Income Accounting and the Balance of Payments
Chapter 14 Exchange Rates and the Foreign Exchange Market: An Asset Approach
Chapter 15 Money, Interest Rates, and Exchange Rates
Chapter 16 Price Levels and the Exchange Rate in the Long Run
Chapter 17 Output and the Exchange Rate in the Short Run
Chapter 18 Fixed Exchange Rates and Foreign Exchange Intervention

Part 4 International Macroeconomic Policy
Chapter 19 International Monetary Systems: An Historical Overview
Chapter 20 Financial Globalization: Opportunity and Crisis
Chapter 21 Optimum Currency Areas and the Euro
Chapter 22 Developing Countries: Growth, Crisis, and Reform

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