Includes index.

Preface -- Introduction -- International trade theory -- World trade : an overview -- Labor productivity and comparative advantage : the ricardian model -- Specific factors and income distribution -- Resources and trade: the heckscher-ohlin model -- The standard trade model -- External economies of scale and the international location of production -- Firms in the global economy: export decisions, outsourcing, and multinational enterprises -- International trade policy -- The instruments of trade policy -- The political economy of trade policy -- Trade policy in developing countries -- Controversies in trade policy -- 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 -- International macroeconomic policy -- International monetary systems: an historical overview -- Financial globalization : opportunity and crisis -- Optimum currency areas and the euro -- Developing countries: growth, crisis, and reform.