International Economics: Theory and Policy, 11th edition

  • Paul R. Krugman
  • Maurice Obstfeld
  • Marc Melitz


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For courses in International Economics, International Finance, and International Trade.


A balanced approach to theory and policy applications

International Economics: Theory and Policy provides engaging, balanced coverage of the key concepts and practical applications of the two main topic areas of the discipline. For both international trade and international finance, an intuitive introduction to theory is followed by detailed coverage of policy applications. With this new 11th Edition, the author team of Nobel Prize-winning economist Paul Krugman, renowned researcher Maurice Obstfeld, and Marc Melitz of Harvard University continues to set the standard for International Economics coverage.


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Table of contents

1. Introduction


PART 1: International Trade Theory

2. World Trade: An Overview

3. Labor Productivity and Comparative Advantage: The Ricardian Model

4. Specific Factors and Income Distribution

5. Resources and Trade: The Heckscher-Ohlin Model

6. The Standard Trade Model

7. External Economies of Scale and the International Location of Production

8. Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises


PART 2: International Trade Policy

9. The Instruments of Trade Policy

10. The Political Economy of Trade Policy

11. Trade Policy in Developing Countries

12. Controversies in Trade Policy


PART 3: Exchange Rates and Open-Economy Macroeconomics

13. National Income Accounting and the Balance of Payments

14. Exchange Rates and the Foreign Exchange Market: An Asset Approach

15. Money, Interest Rates, and Exchange Rates

16. Price Levels and the Exchange Rate in the Long Run

17. Output and the Exchange Rate in the Short Run

18. Fixed Exchange Rates and Foreign Exchange Intervention


PART 4: International Macroeconomic Policy

19. International Monetary Systems: An Historical Overview

20. Financial Globalization: Opportunity and Crisis

21. Optimum Currency Areas and the Euro

22. Developing Countries: Growth, Crisis, and Reform


Mathematical Postscripts

Postscript to Chapter 5: The Factor-Proportions Model

Postscript to Chapter 6: The Trading World Economy

Postscript to Chapter 8: The Monopolistic Competition Model

Postscript to Chapter 20: Risk Aversion and International Portfolio Diversification



Published by Pearson (April 18th 2017) - Copyright © 2018