solution manual for International Economics Theory and Policy.doc

Contents
Chapter 1 Introduction 1
Overview of Section I: International Trade Theory 3
Chapter 2 World Trade: An Overview 5
Chapter 3 Labor Productivity parative Advantage: The Ricardian Model 8
Chapter 4 Resources, Comparative Advantage, and e Distribution 12
Chapter 5 The Standard Trade Model 16
Chapter 6 Economies of Scale, petition, and International Trade 21
Chapter 7 International Factor Movements 26
Overview of Section II: International Trade Policy 30
Chapter 8 The Instruments of Trade Policy 32
Chapter 9 The Political Economy of Trade Policy 37
Chapter 10 Trade Policy in Developing Countries 42
Chapter 11 Controversies in Trade Policy 45
Overview of Section III: Exchange Rates and Open-Economy Macroeconomics 49
Chapter 12 National e Accounting and the Balance of Payments 51
Chapter 13 Exchange Rates and the Foreign-Exchange Market: An Asset Approach 57
Chapter 14 Money, Interest Rates, and Exchange Rates 64
Chapter 15 Price Levels and the Exchange Rate in the Long Run 70
Chapter 16 Output and the Exchange Rate in the Short Run 76
Chapter 17 Fixed Exchange Rates and Foreign-Exchange Intervention 84
Overview of Section IV: International Macroeconomic Policy 92
Chapter 18 The International ary System, 1870–1973 94
Chapter 19 Macroeconomic Policy and Coordination Under Floating Exchange Rates 99
Chapter 20 Optimum Currency Areas and the European Experience 107
Chapter 21 The Global Capital Market: Performance and Policy Problems 112
Chapter 22 Developing Countries: Growth, Crisis, and Reform 117
Chapter 1
Introduction
anization
What is International Economics About?
The Gains from Trade
The Pattern of Trade
How Much Trade
Balance of Payments
Exchange-Rate Determination
International Policy Coordination
The International Capital Market
International Economics: Trade and Money
nChapter Overview
The intent of this chapter is to provide both an overview of the subject matter of international economics and to provide a guide to