Introduction to international economics, third edition international student version (paperback), 3rd Edition International Student Version

Introduction to International Economics by Dominick Salvatore offers a clear presentation of today′s global economy while explaining the workings of the world economy, the major benefits it provides to both people and nations, and the most serious challenges it faces. The text is filled with more than 85 current and relevant case studies and business examples, represented in every chapter. By using real–world data, Salvatore makes international economics applicable to all.

Salvatore introduces the four principles of international economics that are essential to understanding, evaluating, and solving the important issues facing the United States and the world today. These principles– addressing topics from deep poverty in developing countries to the globalization of capital markets– are discussed in a simple but comprehensive way. The text also provides the most up–to–date and clear exposition of international economics principles.

1. Introduction to the Global Economy 1

PART ONE: INTERNATIONAL TRADE THEORY 29

2. Comparative Advantage 31

3. The Standard Trade Model 55

4. The Heckscher-Ohlin and Other Trade Theories 80

PART TWO: INTERNATIONAL TRADE POLICY 113

5. Trade Restrictions: Tariffs 115

6. Nontariff Trade Barriers and the Political Economy of Protectionism 137

PART THREE: INTERNATIONAL TRADE AND INVESTMENT RELATIONS 175

7. Economic Integration 177

8. Growth and Development with International Trade 200

9. International Resource Movements and Multinational Corporations 226

PART FOUR: THE BALANCE OF PAYMENTS, FOREIGN EXCHANGE MARKETS, AND EXCHANGE RATES 255

10. Balance of Payments 257

11. The Foreign Exchange Market and Exchange Rates 280

12. Exchange Rate Determination 308

PART FIVE: OPEN-ECONOMY MACROECONOMICS 331

13. Automatic Adjustments with Flexible and Fixed Exchange Rates 333

14. Adjustment Policies 362

PART SIX: THE INTERNATIONAL MONETARY SYSTEM: PAST, PRESENT, AND FUTURE 389

15. Flexible versus Fixed Exchange Rates, European Monetary Systems, and Macroeconomic

Policy Coordination 391

16. The International Monetary System: Past, Present, and Future 418