International_Economics_Tenth_Edition (1)
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THOMSON
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1 |
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Contents in Brief |
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Introduction |
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1 |
Chapter 1 |
The International Economy and Globalization |
2 |
Part 1 |
International Trade Relations |
27 |
Chapter 2 |
Foundations of Modern Trade Theory: Comparative Advantage |
28 |
Chapter 3 |
Sources of Comparative Advantage |
63 |
Chapter 4 |
Tariffs .................................................... |
1 0 1 |
Chapter 5 |
Nontariff Trade Barriers |
140 |
Chapter 6 |
Trade Regulations and Industrial Policies |
174 |
Chapter 7 |
Trade Policies for the Developing Nations |
218 |
Chapter 8 |
Regional Trading Arrangements |
253 |
Chapter 9 |
International Factor Movements and Multinational Enterprises |
289 |
Part 2 |
International Monetary Relations |
319 |
Chapter 10 |
The Balance of Payments |
320 |
Chapter 11 |
Foreign Exchange |
340 |
Chapter 12 |
Exchange-Rate Determination |
372 |
Chapter 13 |
Balance-of-Payments Adjustments |
.400 |
Chapter 14 |
Exchange-Rate Adjustments and the Balance of Payments |
.416 |
Chapter 15 |
Exchange-Rate Systems and Currency Crises |
.442 |
Chapter 16 |
Macroeconomic Policy in an Open Economy |
.474 |
Chapter 17 |
International Banking: Reserves, Debt, and Risk |
.490 |
v
Contents
Introduction |
1 |
chapter 1
The International Economy and Globalization |
2 |
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Globalization of Economic Activity |
2 |
International Competitiveness |
17 |
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CLOTH IMPORTS FROM CHINA THREATEN ITALY'S |
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Firm (Industry) Competitiveness |
17 |
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TEXTILE MAKERS |
.4 |
A Nation's Competitiveness |
18 |
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Waves of Globalization |
5 |
Competition, Productivity, and |
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First Wave of Globalization: 1870-1914 |
5 |
Economic Growth |
18 |
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Second Wave of Globalization: 1945-1980 |
5 |
Competition in the World Steel Industry |
19 |
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Latest Wave of Globalization |
6 |
Is International Trade an Opportunity |
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The United States as an Open Economy |
9 |
or a Threat to Workers? |
20 |
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Backlash Against Globalization |
22 |
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Trade Patterns |
9 |
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Terrorism Jolts the Global Economy |
23 |
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Why Is Globalization Important? |
12 |
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The Plan of This Book |
24 |
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ARE DETROIT'S BIG THREE HEADING FOR |
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Summary |
25 |
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A CRASH? |
14 |
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Common Fallacies of International Trade |
15 |
Key Concepts and Terms |
25 |
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Does Free Trade Apply to Cigarettes? |
16 |
Study Questions |
26 |
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Netlink |
26 |
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Part 1: International Trade Relations |
27 |
chapter 2
Foundations of Modern Trade Theory: Comparative Advantage |
28 |
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Historical Development of Modern Trade |
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Production Possibilities Schedules |
33 |
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Theory |
28 |
Trading Under Constant-Cost Conditions |
33 |
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TheMercantilists |
28 |
Basis for Trade and Direction of Trade |
34 |
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Why Nations Trade: Absolute Advantage |
29 |
Production Gains from Specialization |
35 |
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Why Nations Trade: Comparative Advantage |
30 |
Consumption Gains from Trade |
35 |
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BABE RUTH AND THE PRINCIPLE OF COMPARATIVE |
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Distributing the Gains from Trade |
36 |
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ADVANTAGE |
31 |
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vii
viii |
Contents |
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MAYTAG SLASHES COSTS TO SURVIVE IN |
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Empirical Evidence on Comparative |
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GLOBAL ApPLIANCE MARKET |
37 |
Advantage |
.47 |
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Equilibrium Terms of Trade |
38 |
Outsourcing and Free Trade |
.48 |
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Terms-of- Trade Estimates |
39 |
Advantage of Outsourcing |
.49 |
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Dynamic Gains from Trade |
.40 |
Do U.S. COMPANIES HAVE TO OurSOURCE |
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Changing Comparative Advantage |
.41 |
PRODUCTION TO LOW-WAGE COUNTRIES |
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Trading Under Increasing-Cost Conditions |
.42 |
TO REMAIN COMPETITIVE? |
50 |
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Burdens of Outsourcing |
52 |
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Increasing-Cost Trading Case |
.43 |
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Partial Specialization |
.45 |
Summary |
53 |
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Comparative Advantage Extended to Many |
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Key Concepts and Terms |
54 |
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Products and Countries |
.45 |
Study Questions |
54 |
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More Than TWo Products |
.45 |
Netlink |
57 |
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More Than TWo Countries |
.46 |
EXPLORING FURTHER 2.1: |
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Exit Barriers |
.47 |
Comparative Advantage in Money Terms .. 58 |
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chapter 3
Sources of Comparative Advantage |
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63 |
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Factor Endowments as a Source of |
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The product Cycle: A Technologically |
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Comparative Advantage |
63 |
Based Theory of Trade |
80 |
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Factor-Price Equalization |
64 |
Radios. Pocket Calculators. and the |
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Trade and the Distribution of Income |
66 |
International Product Cycle |
81 |
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THE HECKSCHER-OHLIN THEORY: |
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Dynamic Comparative Advantage: |
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U.S.-CHINA TRADE |
67 |
Industrial Policy |
82 |
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Does Trade Make the Poor Even Poorer? |
68 |
Industrial Policies Support Boeing |
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Explaining Wage Inequality |
68 |
and Airbus |
84 |
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Government Regulatory Policies and |
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Evidence on Wage Inequality |
69 |
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Comparative Advantage |
85 |
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Are Actual Trade Patterns Explained |
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Business Services and Comparative |
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by the Factor-Endowment Theory? ..... 71 |
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Advantage |
87 |
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Increasing Returns to Scale and |
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Transportation Costs and Comparative |
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Specialization |
73 |
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Advantage |
89 |
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Overlapping Demands as a Basis for Trade |
76 |
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Trade Effects |
89 |
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Intraindustry Trade |
76 |
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Falling Transportation Costs Foster |
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NIKE AND REEBOK RESPOND TO SWEATSHOP CRillCS: |
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Trade Boom |
91 |
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Bur WAGES REMAIN AT POVERTY LEVEL .....78
Terrorist Attacks Resultin Added Costs and Slowdowns for u.s. Freight System: A New Kind of Trade Barrier?
Summary
Key Concepts and Terms
Contents |
ix |
Study Questions |
95 |
Netlink |
97 |
92
EXPLORING FURTHER 3.1:
94SpecificFactors-Trade and the
95Distribution of Income in the Short Run ...98
chapter 4
Tariffs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......................... |
101 |
The Tariff Concept
Types of Tariffs
Specific Tariff
Ad Valorem Tariff
Compound Tariff
Smuggled Steel Evades U.S. Tariffs
Effective Rate of Protection
Tariff Escalation
Production Sharing and Offshore-
Assembly Provision
Postponing Import Duties
Bonded Warehouse
ForeignTrade Zone
Tariff Welfare Effects: Consumer Surplus
and Producer Surplus
Tariff Welfare Effects: Small-Nation Model
CALCULATING THE WELFARE EFFECTS
OF A TARIFF
Tariff Welfare Effects: Large-Nation Model
How a Tariff Burdens Exporters
SteelUsing Industries Oppose Restrictions
on Steel Imports
Tariff Examples
102 |
Bush's Steel Tariffs Buy Time for |
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102 |
Troubled Industry |
121 |
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103 |
Lamb Tariffs Fleece U.S. Consumers |
123 |
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Harley-Davidson Revs Up Sales with Tariffi |
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103 |
123 |
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124 |
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EFFECTS OF ELIMINATING IMPORT TARIFFS |
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Tariffs and the Poor |
125 |
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104 |
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Arguments for Trade Restrictions |
126 |
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105 |
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JobProtection |
127 |
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107 |
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Protection Against Cheap Foreign Labor |
128 |
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108 |
Fairness in Trade: A Level Playing Field |
130 |
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110 |
Maintenance of the Domestic Standard |
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of Living |
131 |
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110 |
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Equalization of Production Costs |
131 |
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110 |
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Infant-Industry Argument |
131 |
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111 |
Noneconomic Arguments |
132 |
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112 |
The Political Economy of Protectionism |
133 |
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PETITION OF THE CANDLE MAKERS |
134 |
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114 |
A Supply and Demand View of |
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115 |
Protectionism |
134 |
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119 |
Summary |
136 |
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Key Concepts and Terms |
136 |
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120 |
Study Questions |
137 |
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121 |
Netlink |
139 |
x Contents
chapter 5
Nontariff Trade Barriers
Import Quota |
140 |
Trade and Welfare Effects |
141 |
Allocating Quota Licenses |
143 |
Sugar Import Quotas |
144 |
Quotas Versus Tariffs |
144 |
Tariff-Rate Quota: A Two-Tier Tariff |
147 |
Orderly Marketing Agreements |
148 |
Export Quota Effects |
148 |
Japanese Auto Restraints Put Brakes |
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on U.S. Motorists |
151 |
Domestic Content Requirements |
152 |
How "FOREIGN" Is YOUR CAR? |
154 |
Subsidies |
154 |
Domestic Subsidy |
155 |
Export Subsidy |
156 |
Dumping |
157 |
Forms of Dumping |
157 |
International Price Discrimination |
158 |
Antidumping Regulations |
159 |
chapter 6
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140 |
Smith Corona Finds Antidumping |
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Victories Are Hollow |
160 |
SWIMMING UPSTREAM: THE CASE OF |
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VIETNAMESE CATFISH |
161 |
Canadians Press Washington Apple |
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Producers for Level Playing Field |
162 |
Is the Antidumping Law Unfair? |
163 |
Should Average Variable Cost Be the |
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Yardstick for Defining Dumping? |
163 |
Should the Antidumping Law Reflect |
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Currency Fluctuations? |
164 |
Other Nontariff Trade Barriers |
164 |
Government Procurement Policies |
164 |
Social Regulations |
165 |
Sea Transport and Freight Restrictions |
166 |
Summary |
167 |
Key Concepts and Terms |
168 |
Study Questions |
168 |
Netlink |
171 |
EXPLORING FURTHER 5.1: |
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Tariff-Rate Quota Welfare Effects |
172 |
Trade Regulations and Industrial Policies |
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174 |
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U.S. Tariff Policies Before 1930 |
174 |
Should Retaliatory Tariffs Be Used for |
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Smoot-Hawley Act |
175 |
WTO Enforcement? |
183 |
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Reciprocal Trade Agreements Act |
176 |
Does the WTO Harm the Environment? |
184 |
General Agreement on Tariffs and Trade |
178 |
WTO RULINGS OUTRAGE ENVIRONlV1ENTAUSTS |
186 |
The GATTSystem |
178 |
The Doha Round of Trade Negotiations |
188 |
Multilateral Trade Negotiations |
179 |
Trade Promotion Authority |
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World Trade Organization |
181 |
(Fast-Track Authority) |
190 |
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Settling Trade Disputes |
181 |
The Escape Clause (Safeguards) |
190 |
Does theWTO Reduce National Sovereignty? |
.. 182 |
Countervailing Duties |
191 |
Contents xi
Lumber Quotas Hammer Home Buyers |
192 |
Export Promotion and Financing |
203 |
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Antidumping Duties |
193 |
Industrial Policies of Japan |
203 |
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U.S. STEEL COMPANIES LOSE AN UNFAIR |
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Has Industrial Policy Helped Japan? |
205 |
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TRADE CASE AND STILL WIN |
194 |
Strategic Trade Policy |
206 |
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Remedies Against Dumped and |
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Economic Sanctions |
208 |
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Subsidized Imports |
195 |
FaaorsInfluencing the Success of Sanctions |
209 |
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Section 301: Unfair Trading Practices |
197 |
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Iraqi Sanctions |
210 |
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Europe Slips in Banana Dispute |
197 |
Summary |
211 |
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Protection of Intellectual Property Rights |
198 |
Key Concepts and Terms |
212 |
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Trade Adjustment Assistance |
200 |
Study Questions |
213 |
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Will Wage Insurance Make Free Trade |
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Netlink |
214 |
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More Acceptable to Workers? |
201 |
EXPLORING FURTHER 6.1: |
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Industrial Policies of the United States |
202 |
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Welfare Effects of Strategic Trade Policy ...215 |
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chapter 7
Trade Policies for the Developing Nations
Developing-Nation Trade Characteristics .. 218
Tensions Between Developing Countries |
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and Advanced Countries |
220 |
Trade Problems of the Developing |
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Nations |
221 |
Unstable Export Markets |
221 |
Worsening Terms of Trade |
222 |
DOES THE FAIR-TRADE MOVEMENT HELP |
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POOR COFFEE FARMERS? |
224 |
LimitedMarketAccess |
224 |
As U.S. Subsidies and Food Aid Support |
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American Farmers, Developing Growers |
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Cry Foul |
228 |
Aiding the Developing Countries |
229 |
World Bank |
229 |
International Monetary Fund |
230 |
Generalized System of Preferences |
231 |
Stabilizing Primary-Product Prices |
232 |
Production and Export Controls |
232 |
.....................................218
Buffer Stocks |
234 |
Multilateral Contracts |
235 |
The OPEC Oil Cartel |
235 |
Maximizing Cartel Profits |
236 |
ARE INTERNATIONAL LABOR STANDARDS |
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NEEDED TO PREVENT SOCIAL DUMPING? |
238 |
OPEC as a Cartel |
239 |
Economic Growth Strategies: Import |
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Substitution Versus Export-Led Growth |
240 |
Import Substitution |
240 |
Import-Substitution Laws Backfire |
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on Brazil |
241 |
Export-Led Growth |
242 |
Is Economic Growth Good for the Poor? |
242 |
Can All Developing Countries Achieve |
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Export-Led Growth? |
245 |
East Asian Economies |
245 |
EastAsia's Growth Strategy |
245 |
Flying-Geese Pattern of Growth |
246 |
xii |
Contents |
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China: Awakening Giant |
246 |
Summary |
251 |
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China Enters the World Trade Organization |
248 |
Key Concepts and Terms |
251 |
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DOES FOREIGN DIRECT INVESTMENT HINDER |
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Study Questions |
252 |
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OR HELP ECONOMIC DEVELOPMENT? |
249 |
Netlink |
252 |
chapter 8
Regional Trading Arrangements
Regional Integration Versus Multilateralism |
.. 253 |
Types of Regional Trading Arrangements |
254 |
Impetus for Regionalism |
255 |
Effects of a Regional Trading |
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Arrangement |
256 |
Static Effects |
256 |
DID BRITAIN GAIN FROM ENTERING THE
EUROPEAN UNION? TRADE CREATION
VERSUS TRADE DIVERSION
Dynamic Effects
European Union
Pursuing Economic Integration
The EMU Presents Different Faces to
Portugal and Sweden
AgriculturalPolicy
Government Procurement Policies
Economic Costs and Benefits of a
Common Currency: The European
Monetary Union
Optimum Currency Area
Europe as a Suboptimal Currency Area
Challenges for EMU
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253 |
EMU and the United States |
270 |
North American Free Trade Agreement |
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(NAFTA) |
271 |
NAFTA's Benefits and Costs for Mexico |
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and Canada |
271 |
NAFTA's Benefits and Costs for the |
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United States |
273 |
Supreme Court Justices Let Mexican |
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Trucks Roll In |
276 |
Is NAFTA an Optimum Currency Area? |
277 |
Free Trade Area of the Americas |
277 |
THE U.S.-CHILE FREE-TRADE AGREEMENT |
279 |
Asia-Pacific Economic Cooperation |
280 |
Transition Economies |
280 |
Industrial Cooperation |
281 |
The Transition Toward a Market- |
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Oriented Economy |
282 |
Russia and the World Trade Organization |
284 |
Summary |
285 |
Key Concepts and Terms |
286 |
Study Questions |
287 |
Netlink |
288 |
chapter 9
International Factor Movements and Multinational Enterprises |
289 |
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The Multinational Enterprise |
290 |
Demand Factors |
292 |
Motives for Foreign Direct Investment |
292 |
Cost Factors |
292 |