This updated, student-friendly revision covers all the recent controversies over international economic policy. Uses actual examples, graphs and articles to illustrate concepts and theory. Differences in legal systems, international licensing of technology, imperfect competition and scale economies, cartels, export tariffs, NAFTA, the rapid growth of Asian-based MNCs, forward rate determination, Mexico's peso crisis, reverberations and the foreign trade multiplier are among the topics covered.

Table of Contents

Partial table of contents: INTERNATIONAL TRADE. Why Nations Trade: Classical Theory. Why Nations Trade: Modern Theory. New Approaches to Trade Theory. The Theory of Protection: Tariffs and Other Barriers to Trade. Regional Blocs: Discriminatory Trade Liberalization. Commercial Policy. INTERNATIONAL FINANCE AND OPEN ECONOMY MACROECONOMICS. Balance-of-Payments Accounting. Markets for Foreign Exchange. Payments Adjustment with Fixed Exchange Rates. The Theory of Flexible Exchange Rates. International Monetary Experience Before World War II. The International Monetary System, 1945 to 1973. Glossary. Index.