Includes bibliographical references and index.

Introduction -- Part 1: International trade theory -- World trade : an overview -- Labor productivity and comparative advantage : the Ricardian model-- Specific factors and income distribution -- Resources and trade : the Heckscher-Ohlin Model -- The standard trade model -- External economies of scale and the international location of production -- Firms in the global economy : export decisions, outsourcing, and multinational enterprises -- Part 2: International trade policy -- The instruments of trade policy -- The political economy of trade policy -- Trade policy in developing countries -- Controversies in trade policy -- Part 3: Exchange rates and open-economy macroeconomics -- National income accounting and the balance of payments -- Exchange rates and the foreign exchange market : an asset approach -- 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 intervention -- Part 4: International macroeconomic policy -- International monetary systems : an historical overview -- Financial globalization : opportunity and crisis -- Optimum currency areas and the euro -- Developing countries : growth, crisis, and reform -- Mathematical postscripts -- The factor-proportion model ; The trading world economy ; The monopolistic competition model ; Risk aversion and international portfolio diversification.