Includes bibliographical references and index.

Contents: Introduction: What is international economics about? -- 1. International trade theory: World trade- an overview -- Labor productivity and comparative advantage -- Specific factors and income distribution -- Resources and trade -- The standard trade model -- External economies of scale and the international location of production -- Firms in the global economy -- 2. International trade policy: The instruments of trade policy -- The political economy of trade policy --Trade policy in developing countries -- Controversies in trade policy --
3. Exchange rates and open-economy macroeconomics: National income accounting and the balance of payments -- Exchange rates and the foreign exchange market -- Money, interest rates and exchange rates -- Price levels and the exchange rate in the long run -- Output and the exchange rate in the short run -- Fixed exchange rates and foreign exchange interventions -- 4. International macroeconomic policy: International monetary systems -- Financial globalization -- Optimum currency areas and the Euro -- Developing countries-growth, crisis and reform -- Mathematical postscripts --