International Economics , the best-selling textbook in the field, is written by two of the world's preeminent economists. Both the real trade portion of the book and the monetary portion are divided into a core of chapters focused on theory, followed by chapters applying the theory to major policy questions, past and current. The Sixth Edition has been throughly revised to reflect the changes of today's global economic landscape, including the unprecedented expansion of globalization, the increasingly crucial nature of international economic relations, the gains from trade, and recent anti-globalization controversies such as the continuing debate over the optimal level of trade. Consistent with previous editions, the text presents an integrated treatment of the Ricardian model, specific factors, factor endowments, and imperfect competition models of trade, along with in-depth analysis of empirical evidence. It covers the effects and causes of trade policy, including strategic trade policy and the income-distribution effects of trade. The book also provides a unified model of open-economy macroeconomics, based on an asset-market approach to exchange rate determination with a central role for expectations. Features Core theory chapters, followed by chapters applying theory to major policy questions. New - Chapter 9, ???????????????????????????????????The Political Economy of Trade Policy,???????????????????????????????? looks at the influence of special interest payments on political decisions over trade policy and brings the story of the World Trade Organization up-to-date. New - Chapter 11, ???????????????????????????????????Controversies in Trade Policy,???????????????????????????????? examines the theory of strategic trade policy and its explanation of why countries might gain from promoting particular industries, and explores the contemporary roiling debate over globalization. New - Chapter 19, ???????????????????????????????????Macroeconomic Policy and Coordination Under Floating Exchange Rates,???????????????????????????????? features an intuitive discussion of the major results on international policy repercussions. New - Chapter 20, ???????????????????????????????????Optimum Currency Areas and the European Experience,???????????????????????????????? presents fresh perspectives on Europe's single-currency experiment to date. New - Chapter 22, ???????????????????????????????????Developing Countries: Growth, Crisis, and Reform,???????????????????????????????? recounts the dramatic collapse of the Argentine currency in 2002. New and updated boxes and case studies, and an expanded, animated PowerPoint program featuring the text's tables and figures. New enhanced Web site that updates periodically to showcase important global macroeconomic events and developments. Contents Introduction. I. INTERNATIONAL TRADE THEORY. Labor Productivity and Comparative Advantage: The Ricardian Model Specific Factors and Income Distribution. Resources and Trade: The Heckscher-Ohlin Model. The Standard Trade Model. Economies of Scale, Imperfect Competition, and International Trade. International Factor Movements. II. INTERNATIONAL TRADE POLICY. The Instruments of Trade Policy. The Political Economy of Trade Policy. Trade Policy in Developing Countries. Controversies in Trade Policy. III. EXCHANGE RATES AND OPEN-ECONOMY MACROECONOMICS. National Income Accounting and the Balance of Payments. Exchange Rates and the Foreign Exchange Market: An Asset Approach. Money, Interest Rates, and Exchange Rates. Price Levels and the Exchange Rate in the Long Run. Output and the Exchange Rate in the Short Run. Fixed Exchange Rates and Foreign Exchange Intervention. IV. INTERNATIONAL MACROECONOMIC POLICY. The International Monetary System, 1870-1973. Macroeconomic Policy and Coordination Under Floating Exchange Rates. Optimum Currency Areas and The European Experience. The Global Capital Market: Performance and Policy Problems. Developing Countries: Growth, Crisis, and Reform. ?