International Economics, 6 edition

Book Preface

International Economics is designed for a one-semester course covering both the micro and macro components of international economics. The Sixth Edition continues the approach of the first five editions by offering a principles-level introduction to the core theories, together with policy analysis and the institutional and historical contexts of international economic relations. My goal is to make economic reasoning about the international economy accessible to a diverse group of students, including both economics majors and nonmajors. My intention is to present the consensus of economic opinion, when one exists, and to describe the differences when one does not. In general, however, economists are more often in agreement than not.

New to the Sixth Edition

This Sixth Edition of International Economics preserves the organization and coverage of the Fifth Edition and adds a number of updates and enhancements. New to this edition:
â–  All tables and graphs have been updated.
â–  Each chapter begins with a list of student learning outcomes.
■ Chapter 3 has a new case study on the gains from trade that uses the historical example of Japan’s opening in the nineteenth century.
■ Chapter 4 ’s discussion of off-shoring is extended by a new case study examining China’s role in global supply chains for the Apple iPhone 3G.
■ Chapter 5 ’s discussions of intraindustry trade and industrial policies are streamlined, and the model of monopolistic competition is incorporated into the text instead of being left to the appendix.
â–  Chapter 5 also has a new case study on the WTO and developing countries.
■ Chapter 7 ’s discussion of tariff rates now includes data on China and is more
focused on current tariff levels.
â–  Chapter 8 on labor and environmental standards has a new case study on global climate change.
â–  Chapter 10 now provides students with IMF estimates of the number of countries using each type of exchange rate system.
â–  Chapter 13 is refocused towards U.S. international economic relations, including NAFTA, but adds material on other trade agreements, including a new case study on preferential agreements such as the African Growth and Opportunity Act.

â–  Chapter 14 has less material on EU institutions and more on the gains from the Single Market Program, together with a new case study on the current problems in the euro area and the costs of monetary union.
â–  Chapter 17 examines the BRIC economies; the emphasis on China remains, but new material looks at the rise of the BRICs and their impact on the international economy.