International Economics-Global Markets and Competition
----Henry Thompson

• Paperback: 520 pages
• Publisher: World Scientific Publishing Co Pte Ltd; 2nd edition edition (May 2006)
• Language English
• ISBN-10: 9812563466

Description
International Economics: Global Markets and Competition is unique:
• a one-term text for students with principles background
• microeconomic models stress positive theory
• advocates free trade, skeptical about government trade policy
• theory advances through partial and general equilibrium
• over 250 boxed examples from the literature
• problems lead students through theory

Contents
Preface for the Student v
Preface for the Instructor vii
MARKETS AND TRADE
1. Markets, Trade, and Comparative Advantage 3
A. International markets 4
B. Excess supply and demand 13
C. The balance of trade 21
D. Comparative advantage and specialization 27
2. Trade with Constant Costs 37
A. Constant opportunity costs of production 38
B. Specialization and gains from trade 47
C. Extensions of constant cost trade theory 53
D. Applications of constant cost trade theory 62
TRADE: GAINS, PROTECTION, AND TERMS
3. Gains from Trade 73
A. Production possibilities and real income 74
B. Specialization and the gains from trade 82
C. Growth and trade 89
D. Industrial trade policy 97
4. Protection 106
A. Tariffs: Taxes on imports 107
B. Quotas and other nontariff barriers 116
C. Protection and production 123
D. Political economy of protection 127
5. Terms of Trade 136
A. Offer curves 137
B. Tariffs and the terms of trade 149
C. Tariff games 156
D. Trade in nonrenewable natural resources 163
PRODUCTION AND TRADE
6. Factor Proportions Production and Trade 179
A. Specific factors and trade 180
B. Production with two factors and two goods 190
C. Four theorems of production and trade 197
D. Applying factor proportions trade theory 207
7. Industrial Organization and Trade 219
A. Price searching firms and trade 220
B. Intraindustry trade 231
C. Oligopolies 237
D. Other causes of trade 244
INTERNATIONAL INTEGRATION
8. International Labor and Capital 259
A. International migration 260
B. International investment 271
C. Migration, foreign investment, and income redistribution 278
D. Migration, international investment, and trade 285
9. Economic Integration 294
A. Multinational firms 296
B. International externalities 302
C. International political economy 308
D. Steps of economic integration 314
INTERNATIONAL MONEY AND MACROECONOMICS
10. Balance of Payments 327
A. Elasticities and the trade balance 328
B. Current and capital accounts 336
C. International deficits and surpluses 342
D. International fiscal and monetary policy 348
11. The Foreign Exchange Market 356
A. Foreign exchange rates 358
B. Managed exchange rates 367
C. Foreign exchange trading 373
D. Exchange risk 380
12. International Financial Markets 389
A. The international credit market 391
B. Foreign exchange and finance 399
C. International money 408
D. Money and international finance 417
13. Open Economy Macroeconomics 426
A. Microeconomic foundations of macroeconomics 426
B. Closed economy macroeconomics 435
C. The open macro economy 448
D. Inflation, the exchange rate, and macro policy 465
Hints and Partial Answers 475
Acronyms 481
References 483
Name Index 495
Subject Index 499