International Economics, 17th Edition
- Length: 800 pages
- Edition: 1
- Language: English
- Publisher: McGraw-Hill Education
- Publication Date: 2019-03-05
- ISBN-10: 1260004732
- ISBN-13: 9781260004731
- Sales Rank: #374650 (See Top 100 Books)
International Economics, 17e combines rigorous economic analysis with attention to the issues of economic policy that are alive and important today in this field. Written in a concise and readable format, Pugel uses economic terminology when enhancing the analysis so that the reader can build their understanding of global economic developments and evaluate proposals for changes in economic policies. The text is informed by current events and includes the latest in applied international research. Like earlier editions, Pugel also places international economics events within a historical framework. The overall treatment continues to be intuitive rather than mathematical and is strongly oriented towards policy.
International Economics is thoroughly integrated with the adaptive digital tools available in McGraw-Hill’s Connect, proven to increase student engagement and success in the course.
Connect is the only integrated learning system that empowers students by continuously adapting to deliver precisely what they need, when they need it, and how they need it, so that your class time is more engaging and effective.
Cover Title Page Copyright Page Dedication About the Author Preface Acknowledgments Brief Contents Contents Chapter 1 International Economics Is Different Four Controversies The Trade War of 2018 Immigration Brexit China’s Exchange Rate Economics and the Nation-State Factor Mobility Different Fiscal Policies Different Moneys Chapter 2 The Basic Theory Using Demand and Supply Four Questions about Trade Demand and Supply Demand Consumer Surplus Case Study Trade Is Important Global Crisis The Trade Mini-Collapse of 2009 Supply Producer Surplus A National Market with No Trade Two National Markets and the Opening of Trade Free-Trade Equilibrium Effects in the Importing Country Effects in the Exporting Country Which Country Gains More? Summary: Early Answers to the Four Trade Questions Key Terms Suggested Reading Questions and Problems Chapter 3 Why Everybody Trades: Comparative Advantage Adam Smith’s Theory of Absolute Advantage Case Study Mercantilism: Older Than Smith—and Alive Today Ricardo’s Theory of Comparative Advantage Ricardo’s Constant Costs and the Production-Possibility Curve Focus on Labor Absolute Advantage Does Matter Extension What If Trade Doesn’t Balance? Summary Key Terms Suggested Reading Questions and Problems Chapter 4 Trade: Factor Availability and Factor Proportions Are Key Production with Increasing Marginal Costs What’s behind the Bowed-Out Production-Possibility Curve? What Production Combination Is Actually Chosen? Community Indifference Curves Production and Consumption Together Without Trade With Trade Focus on China The Opening of Trade and China’s Shift Out of Agriculture Demand and Supply Curves Again The Gains from Trade Trade Affects Production and Consumption What Determines the Trade Pattern? The Heckscher–Ohlin (H–O) Theory Summary Key Terms Suggested Reading Questions and Problems Chapter 5 Who Gains and Who Loses from Trade? Who Gains and Who Loses within a Country Short-Run Effects of Opening Trade The Long-Run Factor-Price Response Three Implications of the H–O Theory The Stolper–Samuelson Theorem Extension A Factor-Ratio Paradox The Specialized-Factor Pattern The Factor-Price Equalization Theorem Does Heckscher–Ohlin Explain Actual Trade Patterns? Case Study The Leontief Paradox Factor Endowments International Trade What Are the Export-Oriented and Import-Competing Factors? The U.S. Pattern Focus on China China’s Exports and Imports The Canadian Pattern Patterns in Other Countries Focus on Labor U.S. Jobs and Foreign Trade Do Factor Prices Equalize Internationally? Summary: Fuller Answers to the Four Trade Questions Key Terms Suggested Reading Questions and Problems Chapter 6 Scale Economies, Imperfect Competition, and Trade Scale Economies Internal Scale Economies External Scale Economies Intra-Industry Trade How Important Is Intra-Industry Trade? What Explains Intra-Industry Trade? Monopolistic Competition and Trade The Market with No Trade Opening to Free Trade Basis for Trade Extension The Individual Firm in Monopolistic Competition Gains from Trade Oligopoly and Trade Extension The Gravity Model of Trade Substantial Scale Economies Oligopoly Pricing External Scale Economies and Trade Summary: How Does Trade Really Work? Key Terms Suggested Reading Questions and Problems Chapter 7 Growth and Trade Balanced versus Biased Growth Growth in Only One Factor Changes in the Country’s Willingness to Trade Case Study The Dutch Disease and Deindustrialization Effects on the Country’s Terms of Trade Small Country Large Country Immiserizing Growth Technology and Trade Individual Products and the Product Cycle Openness to Trade Affects Growth Focus on Labor Trade, Technology, and U.S. Wages Summary Key Terms Suggested Reading Questions and Problems Chapter 8 Analysis of a Tariff A Preview of Conclusions The Effect of a Tariff on Domestic Producers Global Governance WTO and GATT: Tariff Success The Effect of a Tariff on Domestic Consumers The Tariff as Government Revenue The Net National Loss from a Tariff Extension The Effective Rate of Protection Case Study They Tax Exports, Too The Terms-of-Trade Effect and a Nationally Optimal Tariff Summary Key Terms Suggested Reading Questions and Problems Chapter 9 Nontariff Barriers to Imports Types of Nontariff Barriers to Imports The Import Quota Quota versus Tariff for a Small Country Ways to Allocate Import Licenses Global Governance The WTO: Beyond Tariffs Global Crisis Dodging Protectionism Extension A Domestic Monopoly Prefers a Quota Quota versus Tariff for a Large Country Voluntary Export Restraints Case Study VERs: Two Examples Other Nontariff Barriers Product Standards Domestic Content Requirements Case Study Carrots Are Fruit, Snails Are Fish, and X-Men Are Not Humans Government Procurement How Big Are the Costs of Protection? As a Percentage of GDP As the Extra Cost of Helping Domestic Producers International Trade Disputes America’s “Section 301”: Unilateral Pressure Dispute Settlement in the WTO Focus on China China in the WTO Summary Key Terms Suggested Reading Questions and Problems Chapter 10 Arguments for and against Protection The Ideal World of First Best The Realistic World of Second Best Government Policies toward Externalities The Specificity Rule Promoting Domestic Production or Employment The Infant Industry Argument How It Is Supposed to Work How Valid Is It? Focus on Labor How Much Does It Cost to Protect a Job? The Dying Industry Argument and Adjustment Assistance Should the Government Intervene? Trade Adjustment Assistance The Developing Government (Public Revenue) Argument Other Arguments for Protection: Noneconomic Objectives National Pride National Defense Income Redistribution The Politics of Protection The Basic Elements of the Political–Economic Analysis When Are Tariffs Unlikely? When Are Tariffs Likely? Applications to Other Trade-Policy Patterns Case Study How Sweet It Is (or Isn’t) Summary Key Terms Suggested Reading Questions and Problems Chapter 11 Pushing Exports Dumping Reacting to Dumping: What Should a Dumpee Think? Actual Antidumping Policies: What Is Unfair? Proposals for Reform Case Study Antidumping in Action Export Subsidies Exportable Product, Small Exporting Country Exportable Product, Large Exporting Country Switching an Importable Product into an Exportable Product WTO Rules on Subsidies Should the Importing Country Impose Countervailing Duties? Case Study Agriculture Is Amazing Strategic Export Subsidies Could Be Good Global Governance Dogfight at the WTO Summary Key Terms Suggested Reading Questions and Problems Chapter 12 Trade Blocs and Trade Blocks Types of Economic Blocs Is Trade Discrimination Good or Bad? The Basic Theory of Trade Blocs: Trade Creation and Trade Diversion Other Possible Gains from a Trade Bloc The Eu Experience Case Study Postwar Trade Integration in Europe North America Becomes a Bloc NAFTA: Provisions and Controversies NAFTA: Effects Rules of Origin Renegotiation Trade Blocs among Developing Countries Trade Embargoes Summary Key Terms Suggested Reading Questions and Problems Chapter 13 Trade and the Environment Is Free Trade Anti-Environment? Is the WTO Anti-Environment? The Specificity Rule Again Global Governance Dolphins, Turtles, and the WTO A Preview of Policy Prescriptions Trade and Domestic Pollution Transborder Pollution The Right Solution A Next-Best Solution NAFTA and the Environment Global Environmental Challenges Global Problems Need Global Solutions Extinction of Species Overfishing CFCs and Ozone Greenhouse Gases and Global Warming Summary Key Terms Suggested Reading Questions and Problems Chapter 14 Trade Policies for Developing Countries Which Trade Policy for Developing Countries? Are the Long-Run Price Trends Against Primary Producers? Case Study Special Challenges of Transition International Cartels to Raise Primary-Product Prices The OPEC Victories Classic Monopoly as an Extreme Model for Cartels The Limits to and Erosion of Cartel Power Oil Prices since 1999 Other Primary Products Import-Substituting Industrialization ISI at Its Best Experience with ISI Exports of Manufactures to Industrial Countries Summary Key Terms Suggested Reading Questions and Problems Chapter 15 Multinationals and Migration: International Factor Movements Foreign Direct Investment Multinational Enterprises FDI: History and Current Patterns Why Do Multinational Enterprises Exist? Inherent Disadvantages Firm-Specific Advantages Location Factors Internalization Advantages Oligopolistic Rivalry Taxation of Multinational Enterprises’ Profits Case Study CEMEX: A Model Multinational from an Unusual Place MNEs and International Trade Should the Home Country Restrict FDI Outflows? Should the Host Country Restrict FDI Inflows? Focus on China China as a Host Country Migration How Migration Affects Labor Markets Should the Sending Country Restrict Emigration? Should the Receiving Country Restrict Immigration? Effects on the Government Budget External Costs and Benefits What Policies to Select Immigrants? Case Study Are Immigrants a Fiscal Burden? Summary Key Terms Suggested Reading Questions and Problems Chapter 16 Payments among Nations Accounting Principles A Country’s Balance of Payments Current Account Financial Account Official International Reserves Statistical Discrepancy The Macro Meaning of the Current Account Balance The Macro Meaning of the Overall Balance The International Investment Position Euro Crisis International Indicators Lead the Crisis Summary Key Terms Suggested Reading Questions and Problems Chapter 17 The Foreign Exchange Market The Basics of Currency Trading Using the Foreign Exchange Market Case Study Foreign Exchange Trading Interbank Foreign Exchange Trading Demand and Supply for Foreign Exchange Floating Exchange Rates Fixed Exchange Rates Current Arrangements Arbitrage within the Spot Exchange Market Summary Key Terms Suggested Reading Questions and Problems Chapter 18 Forward Exchange and International Financial Investment Exchange-Rate Risk The Market Basics of Forward Foreign Exchange Hedging Using Forward Foreign Exchange Speculating Using Forward Foreign Exchange Extension Futures, Options, and Swaps International Financial Investment International Investment with Cover Covered Interest Arbitrage Covered Interest Parity International Investment Without Cover Case Study The World’s Greatest Investor Does Interest Parity Really Hold? Empirical Evidence Evidence on Covered Interest Parity Case Study Eurocurrencies: Not (Just) Euros and Not Regulated Evidence on Uncovered Interest Parity Evidence on Forward Exchange Rates and Expected Future Spot Exchange Rates Summary Key Terms Suggested Reading Questions and Problems Chapter 19 What Determines Exchange Rates? A Road Map Exchange Rates in the Short Run The Role of Interest Rates The Role of the Expected Future Spot Exchange Rate The Long Run: Purchasing Power Parity (PPP) The Law of One Price Absolute Purchasing Power Parity Relative Purchasing Power Parity Case Study PPP from Time to Time Relative PPP: Evidence Case Study Price Gaps and International Income Comparisons The Long Run: The Monetary Approach Money, Price Levels, and Inflation Money and PPP Combined The Effect of Money Supplies on an Exchange Rate The Effect of Real Incomes on an Exchange Rate Exchange-Rate Overshooting How Well Can We Predict Exchange Rates? Four Ways to Measure the Exchange Rate Summary Key Terms Suggested Reading Questions and Problems Chapter 20 Government Policies toward the Foreign Exchange Market Two Aspects: Rate Flexibility and Restrictions on Use Floating Exchange Rate Fixed Exchange Rate What to Fix To? When to Change the Fixed Rate? Defending a Fixed Exchange Rate Defense Through Official Intervention Defending against Depreciation Defending against Appreciation Temporary Disequilibrium Disequilibrium That Is Not Temporary Exchange Control International Currency Experience The Gold Standard Era, 1870–1914 (One Version of Fixed Rates) Interwar Instability The Bretton Woods Era, 1944–1971 (Adjustable Pegged Rates) Global Governance The International Monetary Fund The Current System: Limited Anarchy Summary Key Terms Suggested Reading Questions and Problems Chapter 21 International Lending and Financial Crises Gains and Losses from Well-Behaved International Lending Taxes on International Lending International Lending to Developing Countries The Surge in International Lending, 1974–1982 The Debt Crisis of 1982 The Resurgence of Capital Flows in the 1990s The Mexican Crisis, 1994–1995 The Asian Crisis, 1997 The Russian Crisis, 1998 Argentina’s Crisis, 2001–2002 Global Governance Short of Reserves? Call 800-IMF-LOAN Financial Crises: What Can and Does Go Wrong Waves of Overlending and Overborrowing Exogenous International Shocks Exchange-Rate Risk Fickle International Short-Term Lending Extension The Special Case of Sovereign Debt Global Contagion Resolving Financial Crises Rescue Packages Debt Restructuring Reducing the Frequency of Financial Crises Bank Regulation and Supervision Capital Controls Global Financial and Economic Crisis How the Crisis Happened Causes and Amplifiers Euro Crisis National Crises, Contagion, and Resolution Summary Key Terms Suggested Reading Questions and Problems Chapter 22 How Does the Open Macroeconomy Work? The Performance of a National Economy A Framework for Macroeconomic Analysis Domestic Production Depends on Aggregate Demand Trade Depends on Income Equilibrium GDP and Spending Multipliers Equilibrium GDP The Spending Multiplier in a Small Open Economy Foreign Spillovers and Foreign-Income Repercussions A More Complete Framework: Three Markets The Domestic Product Market The Money Market The Foreign Exchange Market (or Balance of Payments) Three Markets Together The Price Level Does Change Trade Also Depends on Price Competitiveness Summary Key Terms Suggested Reading Questions and Problems Chapter 23 Internal and External Balance with Fixed Exchange Rates From the Balance of Payments to the Money Supply The Central Bank’s Balance Sheet and the Money Supply Official Foreign Exchange Intervention From the Money Supply Back to the Balance of Payments Sterilization Monetary Policy with Fixed Exchange Rates Fiscal Policy with Fixed Exchange Rates Perfect Capital Mobility Shocks to the Economy Internal Shocks International Capital-Flow Shocks International Trade Shocks Imbalances and Policy Responses Internal and External Imbalances A Short-Run Solution: Monetary–Fiscal Mix Surrender: Changing the Exchange Rate Case Study A Tale of Three Countries How Well Does the Trade Balance Respond to Changes in the Exchange Rate? How the Response Could Be Unstable Why the Response Is Probably Stable Timing: The J Curve Summary Key Terms Suggested Reading Questions and Problems Chapter 24 Floating Exchange Rates and Internal Balance Monetary Policy with Floating Exchange Rates Fiscal Policy with Floating Exchange Rates Shocks to the Economy Internal Shocks International Capital-Flow Shocks Case Study Why Are U.S. Trade Deficits So Big? International Trade Shocks Internal Imbalance and Policy Responses Global Crisis Liquidity Trap! International Macroeconomic Policy Coordination Case Study Can Governments Manage the Float? Global Crisis Central Bank Liquidity Swaps Summary Key Terms Suggested Reading Questions and Problems Chapter 25 National and Global Choices: Floating Rates and the Alternatives Key Issues in the Choice of Exchange-Rate Policy Effects of Macroeconomic Shocks Case Study What Role for Gold? The Effectiveness of Government Policies Differences in Macroeconomic Goals, Priorities, and Policies Controlling Inflation Real Effects of Exchange-Rate Variability National Choices Extreme Fixes Currency Board “Dollarization” The International Fix—Monetary Union Exchange Rate Mechanism European Monetary Union Summary Key Terms Suggested Reading Questions and Problems APPENDIXES A The Web and the Library: International Numbers and Other Information B Deriving Production-Possibility Curves C Offer Curves D The Nationally Optimal Tariff E Accounting for International Payments F Many Parities at Once G Aggregate Demand and Aggregate Supply in the Open Economy H Devaluation and the Current Account Balance Suggested Answers to Odd-Numbered Questions and Problems References Index
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