International Economics: Theory and Policy, Global Edition, 12th edition

Published by Pearson (February 1, 2022) © 2022
  • Paul R. Krugman
  • Maurice Obstfeld
  • Marc Melitz

Title overview

Engage your students in the key concepts of global economic theory and policy with this reader-friendly text.

International Economics: Theory and Policy, Global Edition, 12th Edition provides a balanced coverage of the key concepts of international theory and policy, from theory to practice.

The latest thoroughly revised edition highlights important economic developments on a theoretical and practical level, focusing on the recent COVID-19 pandemic experience and its implications on the global economy.

An array of useful features and examples in the text will equip your students with the intellectual tools necessary to understand the developments and implications in the changing global economy.

Hallmark features of this title

A unified structure drives student engagement and supports their understanding.
  • Set learning expectations for your students with a list of essential Learning Goals.
  • Encourage them to practice what they have learned with the End-of-Chapter Assignable Problems.
  • Reinforce group discussion with a series of Captioned Diagrams, Summaries, and Key Terms.
Engaging content brings concepts and applications of international finance to life.
  • Encourage your students' understanding of key concepts both in theory and action with the Theory and Application Chapters, addressing issues using the newest empirical work, data, and policy debates.
  • Introduce the latest models, causes and effects of trade policy via an integrated, empirical-based coverage throughout the text.

New and updated features of this title

Discussions use the newest data to highlight recent developments in international economics theory and policy.

NEW and UPDATED - The following chapters provide a new or updated discussion of:

  • The impacts of Brexit and COVID-19 (Chapter 7)
  • Firms' global sourcing decisions and the new USMCA treaty (Chapter 8)
  • US-China trade tensions (Chapter 10)
  • The effects of the Trump trade war on global trade and the COVID-19 pandemic (Chapter 19)
  • The Dec. 2020 EU–UK trade deal plus the prior withdrawal agreement and its implications for the Irish border (Chapter 21)
  • Euro-area policy innovations in response to COVID-19 (Chapter 21)

Learner-focused tools help them master the course material.

  • NEW and UPDATED - Case Studies engage students with theory and real-world applications. New case studies examine the potential link between import competition from developing countries and declines in manufacturing employment in the US (Chapter 4), the gains to US consumers from Chinese imports (Chapter 6), and more.
  • UPDATED - Special Boxes offer engaging, vivid illustrations and videos regarding points made in the text. New boxes discuss the impact of trade shocks on developing countries (Chapter 6), currency manipulation (Chapter 19), the global financial cycle (Chapter 22), and more.

Key features

Features of Pearson eText for the Global Edition, 12th Edition

Engage your students in the key concepts of global economic theory and policy with this reader-friendly text.

International Economics: Theory and Policy, Global Edition, 12th Edition provides a balanced coverage of the key concepts of International Theory and Policy from theory to practice and equips your students with the intellectual tools necessary to understand the changing world economy.

Extend learning beyond the classroom with Pearson eText – an easy-to-use digital textbook.

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  • Get organised and get results. Students can customise how they study and add their own notes, bookmarks, and highlights directly in their eText.
  • Study in a flash. Students can use pre-built flashcards or create their own to study how they like.

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  • Watch and learn.Videos and animations within the eText bring tricky concepts to life (available in selected titles).

Features of MyLab® Economics for the Global Edition, 12th Edition

A fully integrated homework and tutorial system.

  • Algorithmically generated homework and practice exercises correlated to the ones in the text reflect each author's approach and learning style, giving your students unlimited opportunities for practice.
  • Easy to assign, Real-Time Data Analysis Exercises use macroeconomic data from the Federal Reserve Bank of St. Louis's FRED™ site, to test your students' knowledge.
  • News stories and accompanying exercises are posted in MyLab weekly and are available for assignment, askingstudents to recognise and apply economic concepts to current events.

A series of interactive material help students master key concepts and connect theory with practice.

  • Animated Graphs in MyLab accompany many of the key graphs and figures in the text, updated with real-time data from FRED™, allowing students to understand shifts, movements, and changes in the curves and equilibrium values.
  • NEW - Dynamic Study Modules use the latest developments in cognitive science and help students study chapter topics by adapting to their performance in real-time.
  • Digital Interactives are dynamic and engaging assessment activities that promote critical thinking and application of key economic principles, ideal for lectures and classroom discussion.

Table of contents

  1. Introduction

PART ONE: INTERNATIONAL TRADE THEORY

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

PART TWO: INTERNATIONAL TRADE POLICY

  1. The Instruments of Trade Policy
  2. The Political Economy of Trade Policy
  3. Trade Policy in Developing Countries
  4. Controversies in Trade Policy

PART THREE: EXCHANGE RATES AND OPEN-ECONOMY MACROECONOMICS

  1. National Income Accounting and the Balance of Payments
  2. Exchange Rates and the Foreign Exchange Market: An Asset Approach
  3. Money, Interest Rates, and Exchange Rates
  4. Price Levels and the Exchange Rate in the Long Run
  5. Output and the Exchange Rate in the Short Run
  6. Fixed Exchange Rates and Foreign Exchange Intervention

PART FOUR: INTERNATIONAL MACROECONOMIC POLICY

  1. International Monetary Systems: A Historical Overview
  2. Financial Globalization: Opportunity and Crisis
  3. Optimum Currency Areas and the Euro
  4. Developing Countries: Growth, Crisis, and Reform

Author bios

Paul Krugman, the recipient of the 2008 Nobel Memorial Prize in Economic Sciences, taught at Princeton University for 14 years. In 2015, he joined the faculty of the Graduate Centre of the City University of New York, associated with the Luxembourg Income Study, which tracks and analyses income inequality around the world.

In addition to his teaching and academic research, Krugman writes extensively for non-technical audiences and is a regular op-ed columnist for the New York Times.

Maurice Obstfeld is the Class of 1958 Professor of Economics at UC Berkeley. He joined Berkeley in 1989 as a Professor, following appointments at Columbia (1979-1986) and the University of Pennsylvania (1986-1989). He was also a visiting Professor at Harvard between 1989 and 1991.

From 2014 to 2015 he was a member of President Obama's Council of Economic Advisers, and from 2015 to 2018 served as Chief Economist at the International Monetary Fund.

Marc Melitz is the David A. Wells Professor of Political Economy at Harvard University. He holds a BA from Haverford College (1989), an MSBA from the Robert Smith School of Business (1992), and a Ph.D. from the University of Michigan (2000). He is a fellow of the Econometric Society and is affiliated with the National Bureau of Economic Research (NBER), the Centre for Economic Policy Research (CEPR), CESifo, and the Kiel Institute for the World Economy.

His broad research interests are in International Trade and Investment.

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