"Introduction to International Economics, 2nd Edition" has been revised and updated to deliver the most current information on today's global economy for a one-semester course. Renowned educator and author, Dominick Salvatore provides a clear presentation with several case studies per chapter to make difficult economic principles easy to understand, in a real-world context. By covering the topics essential to an understanding of the global economy, this text is easily accessible for economics, business, and political science majors, alike. For any international economics course, Salvatore's 2nd edition takes the students' understanding of economics well beyond the classroom and across the globe
1 Introduction to the Global Economy 1
Pt. 1 International Trade Theory 29
2 Comparative Advantage 31
3 The Standard Trade Model 57
4 The Heckscher-Ohlin and Other Trade Theories 82
Pt. 2 International Trade Policy 115
5 Trade Restrictions: Tariffs 117
6 Nontariff Trade Barriers and the Political Economy of Protectionism 140
Pt. 3 International Trade and Investment Relations 175
7 Economic Integration 177
8 Growth and Development with International Trade 201
9 International Resource Movements and Multinational Corporations 228
Pt. 4 The Balance of Payments, Foreign Exchange Markets, and Exchange Rates 257
10 Balance of Payments 259
11 The Foreign Exchange Market and Exchange Rates 283
12 Exchange Rate Determination 312
Pt. 5 Open-Economy Macroeconomics 335
13 Automatic Adjustments with Flexible and Fixed Exchange Rates 337
14 Adjustment Policies 368
Pt. 6 The International Monetary System: Past, Present, and Future 395
15 Flexible versus Fixed Exchange Rates, European Monetary Systems, and Macroeconomic Policy Coordination 397
16 The International Monetary System: Past, Present, and Future 424