International Economics: Theory and Policy, 11th edition

About the book

Reveal theory and applications of trade and finance via a unified structure

The text’s unified structure presents a balance of theoretical and practical coverage of both trade and finance. For each topic area, chapters on core theory are followed by a series of application chapters that confront policy questions using the newest empirical work, data, and policy debates. This structure enables students to grasp theoretical concepts and then see those same concepts in action, aiding retention and highlighting the relevance of course material.

The sections in the text’s first half provide engaging and practical coverage of the tenets and applications of international trade. Key coverage includes the following:

• An integrated, empirical-based treatment of the latest models of trade, such as the gravity, Ricardian, factor endowments, and imperfect competition models,
• A thorough discussion of the causes and effects of trade policy focused on the income-distribution effects of trade.
• An emphasis on the potential substitutability of international trade and international movements of factors of production, featuring an analysis of international borrowing and lending as intertemporal trade–the exchange of present consumption for future consumption.
• The content in the latter half of the text brings the concepts and applications of international finance to life. Highlights are as follows:
• A unified model of open-economy macroeconomics that provides students with a cohesive approach to the theory, based on an asset-market approach to exchange rate determination with expectations in a central role.
• A discussion of the international monetary experience that stresses the idea that different exchange rate systems lead to different policy coordination problems.

Give students learning tools to master course material

• Chapter-opening Learning Goals list the essential concepts so students understand what they need to take away from each chapter.
• Case Studies illustrate theory using real-world applications and provide important historical context.
• Special Boxes offer vivid illustrations of points made in the text. Topics include the political backdrops underlying the theories of Ricardo and Hume, the story of Bolivian hyperinflation, and adjustments to asymmetric shocks.
• End-of-chapter Problems, many of which cite real data or policies, allow students to practice what they’re learning. They range from routine computational drills to more analytical questions and problems. All end-of-chapter problems are included in MyLab™ Economics so that instructors can assign homework without needing to grade students’ work by hand.
• Further Reading sections at the end of each chapter provide annotated bibliographies of both seminal works and recent articles, encouraging students to explore the material further.

Also available with MyLab Economics

MyLab Economics is an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its structured environment, students practice what they learn, test their understanding, and pursue a personalized study plan that helps them better absorb course material and understand difficult concepts.

• The Enhanced eText keeps students engaged in learning on their own time, while helping them achieve greater conceptual understan

About the book

Relay recent developments in the theoretical and practical sides of international economics

• Case study on trade and unemployment discusses the potential links between import competition from developing countries--especially China--and declining manufacturing employment in the US (Chapter 4).
• Case study documents the trend towards greater wage convergence in the European Union following its expansion to the East (Chapter 4).
• Box explores how the compensation of capital owners relative to workers has increased in the US (Chapter 5).
• Box discusses recent evidence showing that the gains from trade have a pro-poor bias--because consumers with relatively lower incomes tend to consume a relatively higher share of their income on goods that are more widely traded (Chapter 6).
• Box explains how many of the goods we consume are produced offshore in “Global Value Chains” and how this recent trend leads to misleading statistics for bilateral trade deficits (Chapter 8).
• Coverage of the failure of the Doha Round of trade negotiations to reach an agreement, and the failure of the Trans-Pacific Partnership (Chapter 10).
• Box discusses “Brexit”--Britain’s startling vote to leave the European Union (EU) (Chapter 10).
• Research suggests that rapid changes in international trade flows have larger adverse effects on workers than previously realized (Chapter 12).
• Box describes China’s offshore market and the relationship between its onshore and offshore exchange rates (Chapter 14).
• Box on the role of invoice currencies in exchange-rate pass-through (Chapter 17).
• Box describes the dangers of deflation (Chapter 19).
• Box on Brexit, specifically the process through which Britain is likely to leave the EU (Chapter 21).
• Coverage of the key role of commodities in developing-country growth, and the commodity “super cycle” (Chapter 22).
• Additional coverage of relevant topics and events including the impact of the North American Free Trade Agreement (NAFTA) on car production in Canada, Mexico, and the United States; why the decision by Nabisco to move production of Oreo cookies to Mexico is a consequence of trade restrictions on refined sugar; the role of negative interest rates in unconventional monetary policy; and the increasingly important role of emerging market economies in driving global growth.

Also available with MyLab Economics

MyLab™ Economics is an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its structured environment, students practice what they learn, test their understanding, and pursue a personalized study plan that helps them better absorb course material and understand difficult concepts.

• Math Review Exercises. MyLab Economics now offers a rich array of assignable and auto-graded exercises covering fundamental math concepts geared specifically to principles and intermediate economics students. Aimed at increasing student confidence and success, the new math skills review Chapter R is accessible from the assignment manager and contains over 150 graphing, algebra, and calculus exercises for homework, quiz, and test use. Offering economics students warm-up math assignments, math remediation, or math exercises as part of any content assignment has never been easier!
• HTML5 Player. In addition to matching the Flash player’s support of Accessibility requirements, the HTML5 player has a new “Show Work” feature to allow students to enter text either from a keyboard or stylus and to draw freehand on different backgrounds, such as a coordinate graph, with multiple fonts and colors. Students can also continue to upload images such as phone-photos of handwritten work. Printing enhancements include:
• a more pen-and-paper-friendly layout of exercises
• the ability for instructors to choose whether to print the header; to include an honor statement; and to print with answers inline, after each question, or on a separate sheet