Thought-provoking and clearly explained, the new edition provides students of international economics and international business with a rigorous explanation of global economic theory and policy, both current trends and historic developments. It explores key models through case studies and review questions, enabling students to challenge the reporting of economic events by press and government alike.
Split into 2 parts – International Trade and International Finance – the text explains conceptual building blocks before applying them to current events and controversies. Key issues discussed include:
- the influence of transportation costs
- economies of scale and the new economic geography
- the evaluation of preferential trade agreements
- european Economic and Monetary Union
- the integration of international financial markets
- international financial crises, China and other emerging economies.
Fully illustrated with tables and figures to allow students to visualise the issues discussed, the lively prose gives this book a refreshing approach. An accompanying website also provides context and coverage of the international financial crisis of October 2008, including the so-called ‘credit crunch’ and the collapse of some banking institutions.
Table of Contents
1. An Introduction: Life in an International Economy Part 1: International Trade and Trade Policy 2. Why Do Nations Trade? Some Early Answers 3. Why Do Nations Trade? Some Later Answers 4. Trade and the Role of Factor Endowments 5. Scale, Competition and Trade 6. The Theory of Protection Tariffs and Other Barriers to Trade 7. Arguments for Protection and the Political Economy of Trade Policy 8. International Mobility of Labor and Capital 9. Regional Blocs: Preferential Trade Liberalization 10. Commercial Policy and the WTO 11. Trade and Growth Part 2: International Finance and Open Economy Macroeconomics 12. The Balance of Payments and the Exchange Rate 13. Fundamentals of Exchange Rate Systems 14. An Introduction to Modeling the Open Economy 15. Extensions of the Basic Open Economy Model: Policy Effectiveness and the Large Open Economy 16. International Capital Markets 17. Modelling International Capital Markets 18. Policy Under Fixed Exchange Rates 19. Policy under Flexible Exchange Rates and Extensions of the Mundell-Fleming Model 20. Perfectly Flexible Prices and Exchange Rate Dynamics 21. The International Monetary System: A Brief History 22. European Monetary Integration 23. International Financial Crises
Theo S. Eicher is Professor and Robert R. Richards Distinguished Scholar in the Department of Economics at the University of Washington, Seattle, USA. He is also an affiliate professor at Ludwig-Maximilians-Universität, Munich, Germany.
John Mutti is the Sidney Meyer Professor International Economics at Grinnell College, Iowa, USA. His experience in government includes the US Treasury Office of International Taxation and the President’s Council of Economic Advisers. His research focuses on international trade, taxation, and foreign direct investment.
Michelle Turnovsky is a Senior Lecturer in the Department of Economics, at the University of Washington, Seattle, USA.