A consistent presentation style helps readers understand the connections among concepts. Extensive additional material is available on the Web, and chapters in the book include links to important Internet sites and data sources. Identifies the major international economic (trade and financial) problems facing the United States and the world today, and how they can be resolved. Table of Contents 1. Introduction. PART ONE: INTERNATIONAL TRADE THEORY. 2. The Law of Comparative Advantage. 3. The Standard Theory of International Trade. 4. Demand and Supply, Offer Curves, and the Terms of Trade. 5. Factor Endowments and the Heckscher-Ohlin Theory. 6. Economies of Scale, Imperfect Competition, and International Trade. 7. Economic Growth and International Trade. PART TWO: INTERNATIONAL TRADE POLICY. 8. Trade Restrictions: Tariffs. 9. Nontariff Trade Barriers and the New Protectionism. 10. Economic Integration: Customs Unions and Free Trade Areas. 11. International Trade and Economic Development. 12. International Resource Movements and Multinational Corporations. PART THREE: THE BALANCE OF PAYMENTS, FOREIGN MARKETS,  AND EXCHANGE RATES. 13. Balance of Payments. 14. Foreign Exchange Markets and Exchange Rates. 15. Exchange Rate Determination. PART FOUR: OPEN ECONOMY??????????????????????????????????????MACROECONOMICS AND THE INTERNATIONAL MONETARY SYSTEM. 16. The Price Adjustment Mechanism with Flexible and Fixed Exchange Rates. 17. The Income Adjustment Mechanism and Synthesis of Automatic Adjustments. 18. Open-Economy Macroeconomics: Adjustment Policies. 19. Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply. 20. Flexible versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination. 21. The International Monetary System: Past, Present, and Future. Answers to Selected Problems. Glossary of Key Terms. Name Index. Subject Index.