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1. Introduction



2. World Trade: An Overview



3. Labor Productivity and Comparative Advantage: The Ricardian Model



4. Specific Factors and Income Distribution



5. Resources and Trade: The Heckscher-Ohlin Model



6. The Standard Trade Model



7. External Economies of Scale and the International Location of Production



8. Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises



9. The Instruments of Trade Policy



10. The Political Economy of Trade Policy



11. Trade Policy in Developing Countries



12. Controversies in Trade Policy



13. National Income Accounting and the Balance of Payments



14. Exchange Rates and the Foreign Exchange Market: An Asset Approach



15. Money, Interest Rates, and Exchange Rates



16. Price Levels and the Exchange Rate in the Long Run



17. Output and the Exchange Rate in the Short Run



18. Fixed Exchange Rates and Foreign Exchange Intervention



19. International Monetary Systems: An Historical Overview



20. Financial Globalization: Opportunity and Crisis



21. Optimum Currency Areas and the Euro



22. Developing Countries: Growth, Crisis, and Reform