International economics : theory and policy

Format:

Book

Author/Creator:

Suranovic, Steve, author.

Language:

English

Subjects (All):

Economics--Textbooks.

Economics.

Political science--Textbooks.

Political science.

Physical Description:

1 online resource

Place of Publication:

[Place of publication not identified] Saylor Foundation [2012]

Language Note:

In English.

Summary:

This text strives to reach a median between these two approaches. First, I believe that students need to learn the theory and models to understand how economists understand the world. I also think these ideas are accessible to most students if they are explained thoroughly. This text presents numerous models in some detail, not by employing advanced mathematics, but rather by walking students through a detailed description of how a model's assumptions influence its conclusions. Second, and perhaps more important, students must learn how the models connect with the real world. I believe that theory is done primarily to guide policy. We do positive economics to help answer the normative questions; for example, what should a country do about its trade policy or its exchange rate policy? The results from models give us insights that help us answer these questions. Thus this text strives to explain why each model is interesting by connecting its results to some aspect of a current policy issue. A prime example is found in Chapter 11 "Evaluating the Controversy between Free Trade and Protectionism" of this book, which addresses the age-old question of whether countries should choose free trade or some type of selected protection. The chapter demonstrates how the results of the various models presented throughout the text contribute to our understanding of this long-standing debate.

Contents:

Preface

Chapter 1: Introductory Trade Issues: History, Institutions, and Legal Framework

Chapter 2: The Ricardian Theory of Comparative Advantage

Chapter 3: The Pure Exchange Model of Trade

Chapter 4: Factor Mobility and Income Redistribution

Chapter 5: The Heckscher-Ohlin (Factor Proportions) Model

Chapter 6: Economies of Scale and International Trade

Chapter 7: Trade Policy Effects with Perfectly Competitive Markets

Chapter 8: Domestic Policies and International Trade

Chapter 9: Trade Policies with Market Imperfections and Distortions

Chapter 10: Political Economy and International Trade

Chapter 11: Evaluating the Controversy between Free Trade and Protectionism

Chapter 12: Introductory Finance Issues: Current Patterns, Past History, and International Institutions

Chapter 13: National Income and the Balance of Payments Accounts

Chapter 14: The Whole Truth about Trade Imbalances

Chapter 15: Foreign Exchange Markets and Rates of Return

Chapter 16: Interest Rate Parity

Chapter 17: Purchasing Power Parity

Chapter 18: Interest Rate Determination

Chapter 19: National Output Determination

Chapter 20: The AA-DD Model

Chapter 21: Policy Effects with Floating Exchange Rates

Chapter 22: Fixed Exchange Rates

Chapter 23: Policy Effects with Fixed Exchange Rates

Chapter 24: Fixed versus Floating Exchange Rates

Notes:

Description based on online resource