Incluye glosario.

Incluye referencias bibliográficas.

Introduction: Life in an international economy -- Why do nations trade? : some early answers -- Why do nations trade? : some later answers -- Trade and the role of factor endowments -- Scale, competition and trade -- The theory of protection tariffs and other barriers to trade -- Arguments for protection and the political economy of trade policy -- International mobility of labor and capital -- Regional blocks : preferential trade liberalization -- Commercial policy and the WTO -- Trade and growth -- The balance of payments and the exchange rate -- Fundamentals of exchange rate systems -- An introduction to modeling the open economy -- Extensions of the basic open-economy model : policy effectiveness and the large open economy -- International capital markets -- Modeling international capital markets -- Policy under fixed exchange rates -- Policy under flexible exchange rates and extensions of the Mundell-Fleming model -- Perfectly flexible prices and exchange rate dynamics -- The international monetary system : a brief history -- European monetary integration -- International financial crises.

Thought-provoking and clearly explained, the new edition provides students of international economics and international business with a rigorous explanation of global economic theory and policy, both current trends and historic developments. It explores key models through case studies and review questions, enabling students to challenge the reporting of economic events by press and government alike. Split into 2 parts - International Trade and International Finance - the text explains conceptual building blocks before applying them to current events and controversies. Key issues discussed include: * the influence of transportation costs * economies of scale and the new economic geography * the evaluation of preferential trade agreements * european Economic and Monetary Union * the integration of international financial markets * international financial crises, China and other emerging economies. Fully illustrated with tables and figures to allow students to visualise the issues discussed, the lively prose gives this book a refreshing approach. An accompanying website also provides context and coverage of the international financial crisis of October 2008, including the so-called 'credit crunch' and the collapse of some banking institutions.