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

• Learning Goals list 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, including President Jefferson’s trade embargo of 1807–1809, specific disputes over trade, the role of currency swap lines among central banks, and the rapid accumulation of foreign exchange reserves by developing countries.
• 200+ Captioned diagrams reinforce discussions in the text and help students in reviewing the material.
• Summary and Key Terms. Each chapter closes with a summary recapping the major points to aid student review of the material.
• 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.

 

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

• EXPANDED! 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).
• NEW! Case study documents the trend towards greater wage convergence in the European Union following its expansion to the East (Chapter 4).
• NEW! Box explores how the compensation of capital owners relative to workers has increased in the US (Chapter 5).
• NEW! 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).
• NEW! 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).
• REVISED! 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).
• NEW! Box discusses “Brexit”--Britain’s startling vote to leave the European Union (EU) (Chapter 10).
• NEW! Research suggests that rapid changes in international trade flows have larger adverse effects on workers than previously realized (Chapter 12).
• NEW! Box describes China’s offshore market and the relationship between its onshore and offshore exchange rates (Chapter 14).
• NEW! Box on the role of invoice currencies in exchange-rate pass-through (Chapter 17).
• NEW! Box describes the dangers of deflation (Chapter 19).
• NEW! Box on Brexit, specifically the process through which Britain is likely to leave the EU (Chapter 21).
• NEW! Coverage of the key role of commodities in developing-country growth, and the commodity “super cycle” (Chapter 22).
• UPDATED! 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.

• An online homework and tutorial system puts students in control of their own learning. Within the MyLab Economics structured environment, students practice what they learn, test their understanding, and then pursue a study plan that MyLab Economics generates for them based on their performance on practice tests.
• Question Help. Homework and practice questions in MyLab Economics are correlated to the textbook, generate algorithmically to give students unlimited opportunity for practice and mastery, and offer helpful feedback when students enter incorrect answers. Questions include guided solutions and other multimedia assets for extra help at point-of-use.
• The Enhanced eText keeps students engaged in learning on their own time, while helping them achieve greater conceptual understanding of course material. The worked examples, animations, and interactive tutorials bring learning to life, and algorithmic practice allows students to apply the very concepts they are reading about. Combining resources that illuminate content with accessible self-assessment, MyLab Economics with Enhanced eText provides students with a complete digital learning experience--all in one place.

• Animated Graphs in MyLab Economics accompany many of the key graphs and figures in the text, and have been updated with real-time data from FRED™ (Federal Reserve Economic Data)--a comprehensive, up-to-date data set maintained by the Federal Reserve Bank of St. Louis. Students can display a pop-up graph that shows new data plotted in the graph, to better understand how to work with data and understand how including new data affects graphs. More dynamic than graphs on a printed page, these animated ones help students understand shifts in curves, movements along curves, and changes in equilibrium values.
• Real-Time Data Analysis. These exercises allow instructors to assign problems that use up-to-the-minute data. Each RTDA exercise loads the appropriate and most currently available data from FRED. Exercises are graded based on that instance of data, and feedback is provided.
• Interactive Homework Exercises. Participate in a fun, engaging, and easy-to-use activity that helps promote active learning and mastery of important economic concepts.
• Flexible tools allow instructors to easily and effectively customize online course materials to suit their needs. Instructors can create and assign tests, quizzes, or homework assignments. MyLab Economics saves time by automatically grading questions and tracking results in an online gradebook. After registering for MyLab Economics, instructors can also access downloadable supplements.
• Interactive Solved Problems. Each of the Solved Problems in the text is accompanied by a similar problem in MyLab Economics, so students can practice and build their problem-solving skills. These interactive tutorials help students learn to think like economists and apply basic problem-solving skills to homework, quizzes, and exams. The goal is for students to build skills they can use to analyze real-world economic issues they hear and read about in the news. Available for select titles.
• NEW! 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!
• Current News Exercises. Every week, current microeconomic and macroeconomic news stories, with accompanying exercises, are posted to MyLab Economics. Assignable and auto-graded, these multi-part exercises ask students to recognize and apply economic concepts to real-world events.
• Experiments are a fun and engaging way to promote active learning and mastery of important economic concepts. Pearson’s Experiments program is flexible and easy for instructors and students to use. Single-player experiments allow your students to play against virtual players from anywhere at any time so long as they have an Internet connection. Multiplayer experiments allow you to assign and manage a real-time experiment with your class. Pre- and post-questions for each experiment are available for assignment in MyLab Economics.
• Digital Interactives. Economic principles are not static ideas, and learning them shouldn’t be either! Digital Interactives are dynamic and engaging assessment activities that promote critical thinking and application of key economic principles. Each Digital Interactive has 3-5 progressive levels and requires approximately 20 minutes to explore, apply, compare, and analyze each topic. Many Digital Interactives include real-time data from FRED allowing professors and students to display, in graph and table form, up-to-the-minute data on key macro variables. Digital Interactives can be assigned and graded within MyLab Economics, or used as a lecture tool to encourage engagement, classroom conversation, and group work.
• Learning Catalytics™ helps you generate class discussion, customize your lecture, and promote peer-to-peer learning with real-time analytics. As a student response tool, Learning Catalytics uses students’ smartphones, tablets, or laptops to engage them in more interactive tasks and thinking.
• NEW! Upload a full PowerPoint^® deck for easy creation of slide questions.
• NEW! Team names are no longer case sensitive.
• Help your students develop critical thinking skills.
• Monitor responses to find out where your students are struggling.
• Rely on real-time data to adjust your teaching strategy.
• Automatically group students for discussion, teamwork, and peer-to-peer learning.
• Personalized Learning. Not every student learns the same way or at the same rate. With the growing need for acceleration through many courses, it's more important than ever to meet students where they learn. Personalized learning in MyLab Economics gives you the flexibility to incorporate the approach that best suits the needs of your course and students.
• The Study Plan acts as a tutor, providing personalized recommendations for each of your students based on his or her ability to master the learning objectives in your course. This allows students to focus their study time by pinpointing the precise areas they need to review, and allowing them to use customized practice and learning aids--such as videos, eText, tutorials, and more--to get them back on track. Using the report available in the Gradebook, you can then tailor course lectures to prioritize the content where students need the most support--offering you better insight into classroom and individual performance.
• Unlimited Practice. As students work each exercise, instant feedback helps them understand and apply the concepts. Many Study Plan exercises contain algorithmically generated values to ensure that students get as much practice as they need.
• Learning Resources. Study Plan problems link to learning resources that further reinforce concepts students need to master.
• Help Me Solve This learning aids help students break down a problem much the same way as an instructor would do during office hours. Available for select problems.
• eText links are specific to the problem at hand so that related concepts are easy to review at the point they are needed.
• A graphing tool enables students to build and manipulate graphs to better understand how concepts, numbers, and graphs connect.
• Reporting Dashboard. View, analyze, and report learning outcomes clearly and easily, and get the information you need to keep your students on track throughout the course, with the new Reporting Dashboard. Available via the MyLab Economics Gradebook and fully mobile-ready, the Reporting Dashboard presents student performance data at the class, section, and program levels in an accessible, visual manner.
• UPDATED! 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
• Learning Management System (LMS) Integration. You can now link from Blackboard Learn, Brightspace by D2L, Canvas, or Moodle to MyLab Economics. Access assignments, rosters, and resources, and synchronize grades with your LMS Gradebook. For students, single sign-on provides access to all the personalized learning resources that make studying more efficient and effective.