Table of contents for International economics / James Gerber.

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Contents
Part 1	Introduction and Institutions 1
chapter 1	The United States in a Global Economy 2
Introduction: The Re-Emergence of International 
Economic Integration	2
Globalization in Perspective	3
The Growth of World Trade	4
Capital and Labor Mobility	5
New Features of the Global Economy	7
Trade and Economic Growth	9
Twelve Issues in the International Economy	11
The Gains from Trade (Chapters 3, 4, and 5)	11
Wages, Jobs, and Protection (Chapters 3, 6, 7, and 8)	11
Trade Deficits (Chapters 9 and 11)	11
Regional Trade Agreements (Chapters 2, 13, and 14)	12
The Resolution of Trade Conflicts (Chapters 2, 7, and 8)	12
The Role of International Institutions (Chapters 2 and 12)	12
Exchange Rates and the Macroeconomy (Chapters 10 and 11)	13
Financial Crises and Global Contagion (Chapter 12)	13
Capital Flows and the Debt of Developing Countries 
(Chapters 2, 9, and 12)	13
Crisis and Reform in Latin America (Chapter 15)	14
Export-Led Growth in East Asia (Chapter 16)	14
The Integration of India and China into the World Economy 
(Chapter 17)	14
Vocabulary 15 - Study Questions 15
chapter 2 International Economic Institutions 
since World War II 17
Introduction: International Institutions and Issues 
since World War II	17
International Institutions	17
A Taxonomy of International Economic Institutions	18
The IMF, the World Bank, and the WTO	19
The IMF and World Bank	19
The GATT, the Uruguay Round, and the WTO	20
Case Study: The GATT Rounds 22
Regional Trade Agreements	23
Four Types of Regional Trade Agreements	23
Case Study: Prominent Regional Trade Agreements 24
The Role of International Economic Institutions	26
The Definition of Public Goods	27
Maintaining Order and Reducing Uncertainty	28
Case Study: Bretton Woods	29
Criticism of International Institutions	31
Sovereignty and Transparency	31
Ideology	32
Implementation and Adjustment Costs	33
Summary 34 - Vocabulary 35 - Study Questions 36
PART 2	International Trade 37
chapter 3	Comparative Advantage and the Gains from Trade 38
Introduction: Absolute Advantage and the Gains from Trade	38
Adam Smith and the Attack on Economic Nationalism	38
A Simple Model of Production and Trade	39
Absolute Productivity Advantage and the Gains from Trade	40
Case Study: The International Market for Crude Oil 	42
Comparative Productivity Advantage and the Gains from Trade	44
The Production Possibilities Curve	44
Relative Prices	45
The Price Line, or Trade Line	46
The Gains from Trade	47
Domestic Prices and the Trade Price	49
Absolute and Comparative Productivity Advantage Contrasted	50
Gains from Trade with No Absolute Advantage	50
Comparative Advantage and "Competitiveness"	51
Economic Restructuring	53
Case Study: Changing Comparative Advantage in the Republic 
of Korea, 1960-2000	55
Summary 57 - Vocabulary 57 - Study Questions 58
chapter 4	Comparative Advantage and Factor Endowments 60
Introduction: The Determinants of Comparative Advantage	60
Modern Trade Theory	60
The Heckscher-Ohlin (HO) Trade Model	61
Gains from Trade in the HO Model	62
Trade and Income Distribution	65
The Stolper-Samuelson Theorem	66
The Specific Factors Model	68
Case StudY: Forecasts of Winners and Losers under NAFTA	70
Empirical Tests of the Theory of Comparative Advantage	72
Extension of the Heckscher-Ohlin Model	73
The Product Cycle	73
Foreign Trade versus Foreign Investment	75
Case Study: United States-China Trade	77
Outsourcing	79
Migration and Trade	80
The Impact of Trade on Wages and Jobs	82
Summary 84 - Vocabulary 85 - Study Questions 86
Appendix: Finding Trade Data	87
chapter 5	Beyond Comparative Advantage 90
Introduction: More Reasons to Trade	90
Intraindustry Trade	91
Measures of Intraindustry Trade	91
Characteristics of Intraindustry Trade	92
The Gains from Intraindustry Trade	94
Case Study: United States and Canada Trade	95
Trade and Geography	96
External Economies of Scale	97
Trade and External Economies	98
Industrial Policy	100
Industrial Policies and Market Failure	101
Strategic Trade	103
Industrial Policy Tools	105
Problems with Industrial Policies	106
U.S. Industrial Policies	108
Case Study: Subsidizing Commercial Aircraft	110
Summary 112 - Vocabulary 113 - Study Questions 113
Appendix: A Graphical Illustration of Prices and Costs 
with Monopolistic Competition	114
chapter 6	The Theory of Tariffs and Quotas 116
Introduction: The Impact of Tariffs	116
Analysis of a Tariff	116
Consumer and Producer Surplus	117
The Effect of a Tariff on Prices, Output, and Consumption	118
The Effect of a Tariff on Resource Allocation and Income 
Distribution	120
Other Potential Costs	122
The Large Country Case	123
Effective versus Nominal Rates of Protection	124
Case Study: A Comparison of Tariff Rates	126
Analysis of Quotas	128
Types of Quotas	128
The Effect on the Profits of Foreign Producers	129
Hidden Forms of Protection	131
Case Study: Intellectual Property Rights and Trade	131
Summary 133 - Vocabulary 134 - Study Questions 134
chapter 7	Commercial Policy 136
Introduction: Commercial Policy and Jobs	136
Protection in the European Union, Japan, and the United States	136
Direct Costs and Jobs Saved in Agriculture, Clothing, and Textiles	137
The Logic of Collective Action	140
Case Study: The Uruguay and Doha Rounds	141
Why Nations Protect Their Industries	142
The Labor Argument	143
The Infant Industry Argument	143
The National Security Argument	144
The Retaliation Argument	145
Case Study: Economic Sanctions	146
The Politics of Protection in the United States	148
Countervailing Duties	148
Antidumping Duties	149
Escape Clause Relief	150
Section 301 and Special 301	151
Case Study: Agricultural Subsidies	151
Summary 153 - Vocabulary 153 - Study Questions 154
chapter 8	International Trade and Labor and Environmental 
Standards 155
Introduction: Income and Standards	155
Setting Standards: Harmonization, Mutual Recognition, 
or Separate?	156
Case Study: Income, Environment, and Society	157
Labor Standards	159
Defining Labor Standards	160
Case Study: Child Labor	160
Labor Standards and Trade	163
Evidence on Low Standards as a Predatory Practice	164
Case Study: The International Labor Organization (ILO)	165
Trade and the Environment	167
Transboundary and Non-Transboundary Effects	167
Case Study: Trade Barriers and Endangered Species	169
Alternatives to Trade Measures	170
Labels for Exports	171
Requiring Home Country Standards	172
Increasing International Negotiations	173
Summary 173 - Vocabulary 174 - Study Questions 175
PART 3	International Finance 177
chapter 9	Trade and the Balance of Payments 178
Introduction: The Current Account	178
The Trade Balance	178
The Current Account Balance	179
Introduction to the Financial and Capital Accounts	181
Types of Financial Flows	184
Limits on Financial Flows	188
Case Study: The Mexican Sexenio Crisis	189
The Current Account and the Macroeconomy	190
The National Income and Product Accounts	190
Are Current Account Deficits Harmful?	196
Case Study: Current Account Deficits in the United States	197
International Debt	199
Case Study: Odious Debt	201
The International Investment Position	203
Summary 204 - Vocabulary 205 - Study Questions 205
Appendix A: Measuring the International Investment Position	206
Appendix B: Balance of Payments Data	207
chapter 10	Exchange Rates and Exchange Rate Systems 209
Introduction: Fixed, Flexible, or In-Between?	209
Exchange Rates and Currency Trading	209
Reasons for Holding Foreign Currencies	211
Institutions	212
Exchange Rate Risk	213
The Supply and Demand for Foreign Exchange	214
Supply and Demand with Flexible Exchange Rates	214
Exchange Rates in the Long Run	216
Exchange Rates in the Medium Run and Short Run	220
Case StudY: The Largest Market in the World	224
The Real Exchange Rate	226
Alternatives to Flexible Exchange Rates	228
Fixed Exchange Rate Systems	229
Case Study: Dollarization and Currency Boards	232
Choosing the Right Exchange Rate System	235
Case Study: The End of the Bretton Woods System	238
Single Currency Areas	239
Conditions for Adopting a Single Currency	241
Case Study: Is the NAFTA Region an Optimal Currency Area?	242
Summary 244 - Vocabulary 245 - Study Questions 245
Appendix: The Interest Rate Parity Condition	247
chapter 11	An Introduction to Open Economy Macroeconomics 248
Introduction: The Macroeconomy in a Global Setting	248
Aggregate Demand and Aggregate Supply	249
Fiscal and Monetary Policies	254
Fiscal Policy	254
Monetary Policy	255
Case Study: Fiscal and Monetary Policy during the Great 
Depression	257
Current Account Balances Revisited	260
Fiscal and Monetary Policies, Interest Rates, and Exchange Rates	261
Fiscal and Monetary Policy and the Current Account	262
The Long Run	264
Macro Policies for Current Account Imbalances	265
The Adjustment Process	266
Case Study: The Adjustment Process in the United States	267
Macroeconomic Policy Coordination in Developed Countries	268
Summary 269 - Vocabulary 270 - Study Questions 271
chapter 12	International Financial Crises 273
Introduction: The Challenge to Financial Integration	273
Definition of a Financial Crisis	274
Two Types of International Financial Crises	275
Crises Caused by Macroeconomic Imbalances	275
Crises Caused by Volatile Capital Flows	277
Case Study: The Mexican Peso Crisis of 1994 and 1995	278
Domestic Issues in Crisis Avoidance	281
Moral Hazard and Financial Sector Regulation	282
Exchange Rate Policy	283
Capital Controls	284
Case Study: Chilean Taxes on Capital Inflows	286
Domestic Policies for Crisis Management	287
Case Study: The Asian Crisis of 1997 and 1998	288
Reform of the International Financial Architecture	292
A Lender of Last Resort	293
Conditionality	294
Reform Urgency	296
Summary 297 - Vocabulary 299 - Study Questions 299
PART 4	Regional Issues in the Global Economy 301
chapter 13	Economic Integration in North America 302
Introduction: Expanding Economic Relations	302
Economic and Demographic Characteristics of North America	302
The Canada-U.S. Trade Relationship	305
The Auto Pact of 1965	306
The Canadian-U.S. Trade Agreement (CUSTA) of 1989	307
Recent Mexican Economic History	310
The Slowdown in Economic Growth	310
The Lost Decade of the 1980s	311
Economic Policy Reforms in the Mexican Economy	312
Case Study: Mexico's Export Processing Industry	313
The North American Free Trade Agreement (NAFTA)	315
The NAFTA Debate in the United States	316
Labor Issues	317
Environmental Issues	318
Immigration	320
Jobs, Politics, and the Future	322
The Expansion of NAFTA	325
The Future of NAFTA: A North American Community?	326
Case Study: Doing Business in Canada, Mexico, 
and the United States	328
Summary 329 - Vocabulary 330 - Study Questions 331
chapter 14	The European Union: Many Markets into One 332
Introduction: The European Union	332
The Size of the European Market	333
Before the European Union	336
The Treaty of Rome	336
Institutional Structure of the EEC	337
Deepening and Widening the Community in the 1970s 
and 1980s	340
Before the Euro	340
The Second Wave of Deepening: The Single European Act	343
Case Study: The Schengen Agreement	343
The Delors Report	344
Forecasts of the Gains from the Single European Act	345
Problems in the Implementation of the SEA	346
The Third Wave of Deepening: The Maastricht Treaty	350
Monetary Union and the Euro	351
Costs and Benefits of Monetary Union	352
The Political Economy of a Single Currency	353
Implementation of the Single Currency	354
Widening the European Union	355
Central and Eastern Europe	356
Turkey	358
Case Study: Spain's Switch from Emigration to Immigration	358
The Demographic Challenge of the Future	360
Summary 361 - Vocabulary 362 - Study Questions 363
chapter 15	Trade and Policy Reform in Latin America 364
Introduction: Defining a "Latin American" Economy	364
Population, Income, and Economic Growth	365
Import Substitution Industrialization	367
Origins and Goals of ISI	369
Criticisms of ISI	371
Case Study: ISI in Mexico	373
Macroeconomic Instability and Economic Populism	375
Populism in Latin America	375
The Debt Crisis of the 1980s	376
Proximate Causes of the Debt Crisis	376
Responses to the Debt Crisis	377
Economic Policy Reform and the "Washington Consensus"	380
Stabilization Policies to Control Inflation	380
Structural Reform and Open Trade	383
Case Study: Regional Trade Blocs in Latin America	386
The Washington Consensus	388
The Next Generation of Reforms	389
Summary 391 - Vocabulary 392 - Study Questions 393
chapter 16	Export-Oriented Growth in East Asia 394
Introduction: The High-Performance Asian Economies	394
Population, Income, and Economic Growth	395
General Characteristics of Growth in the HPAEs	399
Shared Growth	399
Rapid Accumulation of Physical and Human Capital	401
Rapid Growth of Manufactured Exports	402
Stable Macroeconomic Environments	402
The Institutional Environment	403
Fiscal Discipline	404
Business-Government Relations	404
Case Study: Deliberation Councils in the Ministry 
of International Trade and Industry (MITI)	405
Avoiding Rent Seeking	406
Case Study: Were East Asian Economies Open?	407
The Role of Industrial Policies	410
Targeting Specific Industries in the HPAEs	410
Did Industrial Policies Work?	411
Case Study: HCI in Korea	413
The Role of Manufactured Exports	414
The Connections between Growth and Exports	414
Is Export Promotion a Good Model for Other Regions?	416
Case Study: Asian Trade Blocs	417
Is There an Asian Model of Economic Growth?	418
Summary 421 - Vocabulary 421 - Study Questions 422
chapter 17	China and India in the World Economy 423
Introduction: The Challenges of Openness	423
Demographic and Economic Characteristics	424
Economic Reforms in China and India	426
The Reform Process in China	426
Indian Economic Reforms	428
Remaining Issues	429
Case Study: Why Did the USSR Collapse and China Succeed? 	430
China and India in the World Economy	432
Chinese and Indian Trade Patterns	432
The Challenges of India and China in the World Economy	435
Unresolved Issues	438
The Choices Ahead	441
Summary 442 - Vocabulary 443 - Study Questions 443
Suggested Readings 445	
Glossary 	454
Index 466

Library of Congress Subject Headings for this publication:

International economic relations.
International economic integration.
International trade.
Commercial policy.
United States -- Foreign economic relations.