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

A balanced approach totheory and policy applications

International Economics:Theory and Policy providesengaging, balanced coverage of the key concepts and practical applications ofthe two main topic areas of the discipline. For both international trade andinternational finance, an intuitive introduction to theory is followed bydetailed coverage of policy applications. With this new EleventhEdition, Global Edition, the author team of Nobel Prize-winningeconomist Paul Krugman, renowned researcher Maurice Obstfeld, and Marc Melitzof Harvard University, continues to set the standard for InternationalEconomics courses.

Pearson MyLab^TM Economicsnot included. Students, if Pearson MyLab Economics is arecommended/mandatory component of the course, please ask your instructor forthe correct ISBN and course ID. MyLab Economics should only be purchased whenrequired by an instructor. Instructors, contact your Pearson rep for moreinformation.

Pearson MyLab Economics is an online homework, tutorial, andassessment product designed to personalize learning and improve results. With awide range of interactive, engaging, and assignable activities, students areencouraged to actively learn and retain tough course concepts.

1. Introduction

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

PART 2: INTERNATIONAL TRADE POLICY
9. The Instruments of Trade Policy
10. The Political Economy of Trade Policy
11. Trade Policy in Developing Countries
12. Controversies in Trade Policy

PART 3: EXCHANGE RATES AND OPEN-ECONOMY MACROECONOMICS
13. National Income Accounting and the Balance of Payments
14. Exchange Rates and the Foreign Exchange Market: An Asset Approach
15. Money, Interest Rates, and Exchange Rates
16. Price Levels and the Exchange Rate in the Long Run
17. Output and the Exchange Rate in the Short Run
18. Fixed Exchange Rates and Foreign Exchange Intervention

PART 4: INTERNATIONAL MACROECONOMIC POLICY
19. International Monetary Systems: An Historical Overview
20. Financial Globalization: Opportunity and Crisis
21. Optimum Currency Areas and the Euro
22. Developing Countries: Growth, Crisis, and Reform

MATHEMATICAL POSTSCRIPTS
Postscript to Chapter 5: The Factor-Proportions Model
Postscript to Chapter 6: The Trading World Economy
Postscript to Chapter 8: The Monopolistic Competition Model
Postscript to Chapter 20: Risk Aversion and International Portfolio Diversification