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GLOBAL
EDITION
International Economics
SEVENTH EDITION
James Gerber
SEVENTH
EDITION
Gerber
GLOBAL
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International Economics
SEVENTH EDITION
GLOBAL EDITION
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Contents
5
International Economics
James Gerber
San Diego State University
SEVENTH EDITION
GLOBAL EDITION
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Authorized adaptation from the United States edition, entitled International Economics, 7th edition, ISBN 978-0-13447209-6, by James Gerber, published by Pearson Education © 2018.
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Brief Contents
Preface 17
part 1
Introduction and Institutions
25
Chapter 1
Chapter 2
An Introduction to the World Economy
International Economic Institutions Since World War II
26
41
Part 2
International Trade
65
Chapter
Chapter
Chapter
Chapter
Chapter
Chapter
Comparative Advantage and the Gains from Trade
Comparative Advantage and Factor Endowments
Beyond Comparative Advantage
The Theory of Tariffs and Quotas
Commercial Policy
International Trade and Labor and Environmental Standards
66
89
118
140
162
182
part 3
International Finance
207
Chapter
Chapter
Chapter
Chapter
Trade and the Balance of Payments
Exchange Rates and Exchange Rate Systems
An Introduction to Open Economy Macroeconomics
International Financial Crises
208
238
274
300
3
4
5
6
7
8
9
10
11
12
part 4Regional Issues in the Global Economy
Chapter
Chapter
Chapter
Chapter
Chapter
13
14
15
16
17
The United States in the World Economy
The European Union: Many Markets into One
Trade and Policy Reform in Latin America
Export-Oriented Growth in East Asia
China and India in the World Economy
Glossary
Index
331
332
358
389
416
445
471
483
Suggested Readings are available at www.pearsonglobaleditions.com/Gerber
7
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CONTENTS
Preface 17
PART 1 Introduction and
Institutions
Chapter 1 An Introduction to the
25
World Economy
Introduction: International Economic
Integration
Elements of International Economic
Integration
The Growth of World Trade
Capital and Labor Mobility
Features of Contemporary
International Economic Relations
Trade and Economic Growth
Twelve Themes in International
Economics
26
26
Capital Flows and the Debt of
Developing Countries (Chapters 2,
9, and 12)
Latin America and the World
Economy (Chapter 15)
Export-Led Growth in East Asia
(Chapter 16)
China and India in the World
Economy (Chapter 17)
38
38
38
39
Vocabulary 39 • Study Questions 39
27
28
30
32
34
35
The Gains from Trade and New Trade
Theory (Chapters 3, 4, and 5)
35
Wages, Jobs, and Protection
(Chapters 3, 6, 7, and 8)
35
Trade Deficits (Chapters 9, 11, and 12) 36
Regional Trade Agreements
(Chapters 2, 13, and 14)
36
The Resolution of Trade Conflicts
(Chapters 2, 7, and 8)
36
The Role of International
Institutions (Chapters 2, 8, and 12) 37
Exchange Rates and the
Macroeconomy (Chapters 10
and 11)
37
Financial Crises and Global
Contagion (Chapter 12)
37
Chapter 2 International Economic
Institutions Since
World War II
Introduction: International Institutions
and Issues Since World War II
International Institutions
A Taxonomy of International
Economic Institutions
The Imf, the World Bank, and
the Wto
The IMF and World Bank
The GATT, the Uruguay Round,
and the WTO
CASE STUDY: The GATT Rounds
Regional Trade Agreements
Five Types of Regional Trade
Agreements
CASE STUDY: Prominent Regional
Trade Agreements
Regional Trade Agreements and
the WTO
For and Against RTAs
41
41
41
42
43
43
44
46
47
47
48
50
51
9
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10
Contents
The Role of International Economic
Institutions
CASE STUDY: Changing Comparative
52
The Definition of Public Goods
Maintaining Order and Reducing
Uncertainty
CASE STUDY: Bretton Woods
53
Criticism of International Institutions
57
Sovereignty and Transparency
Ideology
Implementation and Adjustment
Costs
CASE STUDY: China’s Alternative
to the IMF and World Bank:
The AIIB
57
58
53
55
59
65
and the Gains from Trade 66
Introduction: The Gains from Trade
Adam Smith and the Attack on
Economic Nationalism
A Simple Model of Production
and Trade
Absolute Productivity Advantage and
the Gains from Trade
CASE STUDY: Gains from Trade in
Nineteenth-Century Japan
66
66
68
68
70
71
The Production Possibilities Curve 72
Relative Prices
73
The Consumption Possibilities Curve 73
The Gains from Trade
74
Domestic Prices and the Trade Price 76
Absolute and Comparative Productivity
Advantage Contrasted
77
Gains from Trade with No Absolute
Advantage
78
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81
82
CASE STUDY: Losing Comparative
Advantage
84
Summary 86 • Vocabulary 86 • Study
Questions 87
and Factor Endowments 89
Introduction: The Determinants of
Comparative Advantage
Modern Trade Theory
Chapter 3 Comparative Advantage
Comparative Productivity Advantage
and the Gains from Trade
Comparative Advantage and
“Competitiveness”
Economic Restructuring
79
Chapter 4 Comparative Advantage
60
Summary 61 • Vocabulary 62 • Study
Questions 63
PART 2 International
Trade
Advantage in the Republic
of Korea, 1960–2010
89
90
The HO Trade Model
Gains from Trade in the HO Model
Trade and Income Distribution
90
91
94
The Stolper-Samuelson Theorem
95
The Specific Factors Model
97
CASE STUDY: Comparative Advantage
in a Single Natural Resource
99
Empirical Tests of the Theory of
Comparative Advantage
Extension of the Ho Model
The Product Cycle
CASE STUDY: United States–China
Trade
Foreign Trade versus Foreign
Investment
Off-Shoring and Outsourcing
CASE STUDY: Off-Shoring by
U.S. Multinational Corporations
Migration and Trade
100
101
102
104
105
107
108
109
The Impact of Trade on Wages and Jobs 111
CASE STUDY: Do Trade Statistics
Give a Distorted Picture of Trade
Relations? The Case of the
iPhone 3G
113
Summary 114 • Vocabulary 115 • Study
Questions 116
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Contents
Chapter 5 Beyond Comparative
Advantage
118
Introduction: More Reasons to Trade 118
Intraindustry Trade
119
Characteristics of Intraindustry Trade 120
The Gains from Intraindustry Trade 122
CASE STUDY: United States and
Canada Trade
124
Trade and Geography
Geography, Transportation Costs,
and Internal Economics of Scale
CASE STUDY: The Shifting Geography
of Mexico’s Manufacturing
External Economies of Scale
Trade and External Economies
Industrial Policy
Industrial Policies and Market
Failure
Industrial Policy Tools
CASE STUDY: Clean Energy and
Industrial Policy
Problems with Industrial Policies
CASE STUDY: Do the WTO Rules
Against Industrial Policies Hurt
Developing Countries?
TRIMs Agreement
SCM Agreement
TRIPS Agreement
125
125
126
127
128
129
130
132
133
134
135
136
136
137
Summary 137 • Vocabulary 138 •
Study Questions 138
Chapter 6 The Theory of Tariffs
and Quotas
Introduction: Tariffs and Quotas
Analysis of a Tariff
Consumer and Producer Surplus
Prices, Output, and Consumption
Resource Allocation and Income
Distribution
CASE STUDY: A Comparison of
Tariff Rates
Other Potential Costs
The Large Country Case
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140
140
140
141
142
144
146
148
149
Effective Versus Nominal Rates of
Protection
CASE STUDY: The Uruguay and
Doha Rounds
Analysis of Quotas
Types of Quotas
The Effect on the Profits of Foreign
Producers
Hidden Forms of Protection
CASE STUDY: Intellectual Property
Rights and Trade
11
150
151
153
154
154
156
157
Summary 159 • Vocabulary 159 •
Study Questions 160
Chapter 7 Commercial Policy
Introduction: Commercial Policy,
Tariffs, and Arguments for
Protection
Tariff Rates in the World’s Major
Traders
The Costs of Protectionism
The Logic of Collective Action
CASE STUDY: Agricultural
Subsidies
162
162
163
165
166
167
Why Nations Protect Their Industries 169
Revenue
The Labor Argument
The Infant Industry Argument
The National Security Argument
The Cultural Protection Argument
The Retaliation Argument
CASE STUDY: Traditional Knowledge
and Intellectual Property
The Politics of Protection in the
United States
Antidumping Duties
Countervailing Duties
Escape Clause Relief
Section 301 and Special 301
CASE STUDY: Economic Sanctions
169
170
171
172
172
172
173
175
175
177
177
178
178
Summary 180 • Vocabulary 181 •
Study Questions 181
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12
Contents
Chapter 8 International Trade and
Introduction to the Financial Account 212
Labor and Environmental
Standards
182
Introduction: Income and Standards 182
Setting Standards: Harmonization,
Mutual Recognition, or Separate? 183
CASE STUDY: Income, Environment,
and Society
Labor Standards
Defining Labor Standards
CASE STUDY: Child Labor
Labor Standards and Trade
Evidence on Low Standards as a
Predatory Practice
CASE STUDY: The International
Labour Organization
Trade and the Environment
Transboundary and
NonTransboundary Effects
CASE STUDY: Trade Barriers and
Endangered Species
Alternatives to Trade Measures
185
186
187
188
190
191
192
194
194
196
197
Labels for Exports
198
Requiring Home Country Standards 199
Increasing International
Negotiations
200
CASE STUDY: Global Climate
Change
201
Summary 203 • Vocabulary 204 • Study
Questions 204
Types of Financial Flows
MyLab Economics Real-time Data
Limits on Financial Flows
CASE STUDY: The Crisis of 2007–2009
and the Balance of Payments
The Current Account and the
Macroeconomy
The National Income and Product
Accounts
Are Current Account Deficits
Harmful?
CASE STUDY: Current Account
Deficits in the United States
International Debt
CASE STUDY: Odious Debt
212
213
218
219
220
221
226
227
229
230
The International Investment Position 232
Summary 233 • Vocabulary 234 •
Study Questions 234
APPEnDIx A: Measuring the
International Investment
Position
APPEnDIx B: Balance of Payments
Data
Bureau of Economic Analysis
International Financial Statistics
Balance of Payments Statistics
APPEnDIx C: A Note on Numbers
235
236
236
236
236
237
Chapter 10 Exchange Rates and
Exchange Rate Systems 238
Part 3 International
Finance
Chapter 9 Trade and the Balance
of Payments
Introduction: The Current Account
207
208
208
The Trade Balance
209
The Current and Capital
Account Balances
209
MyLab Economics Real-time Data 211
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Introduction: Fixed, Flexible, or
In-Between?
238
Exchange Rates and Currency Trading 239
Reasons for Holding Foreign
Currencies
Institutions
Exchange Rate Risk
The Supply and Demand for
Foreign Exchange
Supply and Demand with Flexible
Exchange Rates
240
241
242
243
243
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Contents
Exchange Rates in the Long Run
Exchange Rates in the Medium
Run and Short Run
CASE STUDY: The Largest Market
in the World
244
The Long Run
13
290
CASE STUDY: Argentina and the
248
252
Limits to Macroeconomic Policy 291
Macro Policies for Current Account
Imbalances
293
The Real Exchange Rate
Alternatives to Flexible Exchange
Rates
254
Fixed Exchange Rate Systems
CASE STUDY: The End of the
Bretton Woods System
257
Macroeconomic Policy Coordination in
Developed Countries
296
260
Summary 297 • Vocabulary 298 •
Study Questions 299
Choosing the Right Exchange Rate
System
256
262
CASE STUDY: Monetary Unions
264
Single Currency Areas
266
Conditions for Adopting a Single
Currency
267
CASE STUDY: Is the NAFTA Region
an Optimal Currency Area?
269
Summary 270 • Vocabulary 271 •
Study Questions 271
APPEnDIx: The Interest Rate Parity
Condition
272
Chapter 11 An Introduction to
Open Economy
Macroeconomics
Introduction: The Macroeconomy
in a Global Setting
Aggregate Demand and Aggregate
Supply
Fiscal and Monetary Policies
274
274
275
280
Fiscal Policy
Monetary Policy
CASE STUDY: Fiscal and Monetary
Policy during the Great
Depression
280
281
Current Account Balances Revisited
286
283
Fiscal and Monetary Policies, Interest
Rates, and Exchange Rates
287
Fiscal and Monetary Policy and
the Current Account
288
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The Adjustment Process
CASE STUDY: The Adjustment
Process in the United States
Chapter 12 International Financial
Crises
Introduction: The Challenge to
Financial Integration
Definition of a Financial Crisis
Vulnerabilities, Triggers, and
Contagion
Vulnerability: Economic
Imbalances
Vulnerability: Volatile Capital
Flows
How Crises Become International:
Contagion
CASE STUDY: The Mexican Peso
Crisis of 1994 and 1995
Domestic Issues in Crisis Avoidance
Moral Hazard and Financial Sector
Regulation
Exchange Rate Policy
Capital Controls
CASE STUDY: The Asian Crisis of
1997 and 1998
Domestic Policies for Crisis
Management
Reform of the International Financial
Architecture
A Lender of Last Resort
Conditionality
Reform Urgency
293
295
300
300
301
303
304
305
306
307
310
311
312
312
314
318
319
320
321
322
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14
Contents
CASE STUDY: The Global Crisis
of 2007
323
Summary 326 • Vocabulary 328 •
Study Questions 328
The Treaty of Rome
Institutional Structure
PART 4 Regional Issues
in the Global
Economy
331
Chapter 13 The United States in the
World Economy
Introduction: A Changing World
Economy
Background and Context
The Shifting Focus of U.S. Trade
Relations
CASE STUDY: Manufacturing in the
United States
The Nafta Model
Demographic and Economic
Characteristics of North America
Canada–U.S. Trade Relations
Mexican Economic Reforms
The North American Free Trade
Agreement
Two NAFTA-Specific Issues
CASE STUDY: Ejidos, Agriculture,
and NAFTA in Mexico
New and Old Agreements
Labor and Environmental
Standards
Investor-State Relations
Jobs and Trade Agreements
CASE STUDY: The African Growth
and Opportunity Act
332
332
333
334
335
338
338
339
341
343
344
346
348
349
351
352
361
362
362
Deepening and Widening the
Community in the 1970s and 1980s 364
Before the Euro
The Second Wave of Deepening:
The Single European Act
364
366
Agreement
The Delors Report
Forecasts of the Gains from the
Single European Act
Problems in the Implementation
of the SEA
CASE STUDY: The Erasmus+
Program and Higher Education
The Third Wave of Deepening:
The Maastricht Treaty
Monetary Union and the Euro
Costs and Benefits of Monetary
Union
The Political Economy of the Euro
CASE STUDY: The Financial Crisis
of 2007–2009 and the Euro
Widening the European Union
New Members
CASE STUDY: Spain’s Switch from
Emigration to Immigration
The Demographic Challenge of
the Future
367
368
369
370
372
373
374
375
377
378
382
382
383
384
Summary 386 • Vocabulary 387 •
Study Questions 387
354
Chapter 15 Trade and Policy Reform
in Latin America
Chapter 14 The European Union:
Many Markets Into One 358
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360
CASE STUDY: The Schengen
Summary 355 • Vocabulary 356 •
Study Questions 357
Introduction: The European Union
The Size of the European Market
The European Union and its
Predecessors
358
Introduction: Defining a “Latin
American” Economy
Population, Income, and Economic
Growth
389
389
390
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Contents
Import Substitution Industrialization 392
Origins and Goals of ISI
Criticisms of ISI
CASE STUDY: ISI in Mexico
Macroeconomic Instability and
Economic Populism
Populism in Latin America
CASE STUDY: Economic Populism
in Peru, 1985–1990
The Debt Crisis of the 1980s
392
395
396
398
399
400
401
Proximate Causes of the Debt
Crisis
Responses to the Debt Crisis
401
402
Neoliberal Policy Reform and the
Washington Consensus
405
Stabilization Policies to Control
Inflation
Structural Reform and Open Trade
CASE STUDY: Regional Trade Blocs
in Latin America
The Next Generation of Reforms
CASE STUDY: The Chilean Model
405
407
408
410
411
Summary 413 • Vocabulary 414 •
Study Questions 414
Chapter 16 Export-Oriented Growth
in East Asia
Introduction: High-Growth Asian
Economies
Population, Income, and Economic
Growth
A Note on Hong Kong
The Role of Industrial Policies
416
418
420
420
Shared Growth
Rapid Accumulation of Physical
and Human Capital
Rapid Growth of Manufactured
Exports
Stable Macroeconomic
Environments
The Institutional Environment
CASE STUDY: Worldwide
Governance Indicators
420
427
429
431
433
433
434
436
The Role of Manufactured Exports
437
The Connections between Growth
and Exports
437
Is Export Promotion a Good Model
for Other Regions?
439
CASE STUDY: Asian Trade Blocs
440
Is There an Asian Model of Economic
Growth?
441
Summary 443 • Vocabulary 444 •
Study Questions 444
World Economy
416
427
Targeting Specific Industries
Did Industrial Policies Work?
CASE STUDY: HCI in Korea
Chapter 17 China and India in the
General Characteristics of Growth
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Fiscal Discipline and Business–
Government Relations
CASE STUDY: Doing Business in the
Export Oriented Asian
Economies
Avoiding Rent Seeking
CASE STUDY: Were East Asian
Economies Open?
15
Introduction: New Challenges
Demographic and Economic
Characteristics
Economic Reform in China and
India
The Reform Process in China
Indian Economic Reforms
Shifting Comparative Advantages
CASE STUDY: Why Did the USSR
Collapse and China Succeed?
445
445
446
450
451
452
453
455
421
China and India in the World Economy 456
422
457
458
459
461
423
424
425
Chinese and Indian Trade
Patterns
Tariffs and Protection
Current Account Balances
Looking Forward
Four Issues
463
Services
463
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16
Contents
Manufacturing
Resources
Multilateral Institutions
Unresolved Issues
The Choices Ahead
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464
465
465
466
467
Summary 468 • Vocabulary 469 •
Study Questions 469
Glossary 471
Index 483
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Preface
International Economics is designed for a one-semester course covering both the micro
and macro components of international economics. The Seventh Edition continues the
approach of the first six editions by offering a principles-level introduction to the core
theories, together with policy analysis and the institutional and historical contexts of
international economic relations. My goal is to make economic reasoning about the
international economy accessible to a diverse group of students, including both economics majors and nonmajors. My intention is to present the consensus of economic
opinion, when one exists, and to describe the differences when one does not. In general,
however, economists are more often in agreement than not.
New to the Seventh Edition
This Seventh Edition of International Economics preserves the organization and coverage of the Sixth Edition and adds a number of updates and enhancements. New to
this edition:
All tables and graphs have been updated.
New case studies are added in Chapter 2 on the Asian Infrastructure and Investment Bank; Chapter 5 on industrial policies targeting clean energy technology;
and Chapter 16 on the Worldwide Governance Indicators.
■■ Chapter 9 on the balance of payments has incorporated the accounting revisions of the IMF and the implementation of the revisions by the U.S. Bureau of
Economic Analysis. The changes recommended by the IMF are mostly terminology, but also in the presentation of debits and credits. Chapter 9 also adds a
new appendix on the terminology of numbers: billions, thousands of millions,
milliards, and trillions.
■■ The discussion of financial crises in Chapter 12 is presented in terms of vulnerabilities and triggers, following the terminology used by former Fed Chairman
Ben Bernanke, among others.
■■ Chapter 16 has dropped the World Bank’s now-dated terminology and focus on
the High Performance Asian Economies in favor of a more empirically determined set of high growth, export oriented East Asian economies.
■■ Chapter 17 is focused on India and China, exclusively.
■■
■■
17
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18
Preface
■■
The discussion of trade and jobs in Chapters 4, 13, and 17 is more nuanced
and reflects the growing challenge to the consensus that trade is not the
cause of manufacturing’s decline in high-income countries.
Hallmarks of International Economics
Several features of International Economics distinguish it from the many excellent
texts in the field:
First, the approach is broader than the theoretical apparatus used by
economists. Economic theory is covered and its mastery is essential,
but most readers grasp theory more completely when it is presented along
with real-world applications. To this end, I have supplemented economic
theory with case studies and other content ranging from the role of economic institutions and the analysis of international economic policies to
the recent history of the world economy and the challenges facing different geographical regions as they become more economically integrated
internationally.
■■ Second, the objective of covering both the micro and macro sides in a onesemester course necessitates paring back the coverage of theory in order to
focus on the central concepts. As all instructors are aware, many theoretical
topics are of secondary or tertiary importance, which can pose a problem
for students who may lack the needed breadth and depth of understanding
to rank topics by their relative importance.
■■ Third, International Economics provides richer historical and institutional
detail than most other texts. This material illuminates the relationships
between economic theory and policy, and between economics and the
other social sciences.
■■ Fourth, I have organized Part 4 of the book into five chapters, each focused
on a geographic area as follows: North America with emphasis on the
United States, the European Union, Latin America, East Asia, and India
and China. These chapters offer students the chance to broaden their understanding of world trends and to observe the intellectual power of economic
theory in practice.
■■
Flexibility of Organization
A text requires a fixed topical sequence because it must order the chapters one
after another. This is a potential problem for some instructors, as there is a wide
variety of preferences for the order in which topics are taught. The Seventh Edition, like the previous editions, strives for flexibility in allowing instructors to find
their own preferred sequence.
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Preface
19
Part 1 includes two introductory chapters that are designed to build vocabulary,
develop historical perspective, and provide background information about the different international organizations and the roles they play in the world economy.
Some instructors prefer to delve into the theory chapters immediately, reserving this material for later in the course. There is no loss of continuity with this
approach.
Part 2 presents the micro side of international economics, while Part 3 covers
the macro side. These two parts can easily be reversed in sequence if desired.
Part 2 includes six chapters that cover trade models (Chapters 3–5) and commercial policy (Chapters 6–8). A condensed treatment of this section could focus
on the Ricardian model in Chapter 3, and the analysis of tariffs and quotas in Chapters 6 and 7. Chapter 8 on labor and environmental standards can stand on its own,
although the preceding chapters deepen student understanding of the trade-offs.
Part 3 covers the balance of payments, exchange rates, open-economy macroeconomics, and international financial crises. Chapter 11 on open economy macroeconomics is optional. It is intended for students and instructors who want a
review of macroeconomics, including the concepts of fiscal and monetary policy,
in a context that includes current accounts and exchange rates. If Chapter 11 is
omitted, Chapter 12 (financial crises) remains accessible as long as students have
an understanding of the basic concepts of fiscal and monetary policy. Chapter 12
relies most heavily on Chapters 9 (balance of payments) and 10 (exchange rates
and exchange rate systems).
Part 4 presents five chapters, each focused on a geographic area. These chapters
use theory presented in Chapters 3–12 in a similar fashion to the economics discussion that students find in the business press, congressional testimonies, speeches,
and other sources intended for a broad civic audience. Where necessary, concepts
such as the real rate of exchange are briefly reviewed. One or more of these chapters can be moved forward to fit the needs of a particular course.
Supplementary Materials
The following supplementary resources are available to support teaching and
learning.
■■
In recognition of the importance of the Internet as a source of timely
information, MyLab Economics offers Web links for each chapter of Inter
national Economics. These links, complete with descriptions of the content
available at each site, provide easy access to relevant, current data sources.
Other Supplements
Leonie Stone of State University of New York (SUNY) at Geneseo, has revised the
TestGen and Instructor’s Manual to bring it up to date with the text. The TestGen
is available for download on the Instructor’s Resource website. The Instructor’s
Powerpoints are also available online as an additional resource.
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20
Preface
MyLab Economics
Pearson MyLab Economics
Pearson MyLab Economics has been designed and refined with a single purpose
in mind: to create those moments of understanding that transform the difficult
into the clear and obvious. With comprehensive homework, quiz, test, and tutorial options, instructors can manage all their assessment needs in one program.
MyLab Economics for International Economics, Seventh Edition offers the
following resources for students and instructors:
Select end-of-chapter questions from the text are available in MyLab
Economics.
■■ Personal study plans are created for each individual student based on performance on assigned and sample exercises.
■■ Instant tutorial feedback on a student’s problem and graphing responses
to questions.
■■ Interactive learning aids, such as Help Me Solve This (a step-by-step tutorial), help the student right when they need it.
■■ News articles are available for classroom and assignment use. Up-to-date
news articles and complementary discussion questions are posted weekly
to bring today’s news into the classroom and course.
■■ Real-Time Data Analysis These exercises allow instructors to assign problems that use up-to-the-minute data. Each RTDA exercise loads the appropriate and most currently available data from FRED, a comprehensive and
up-to-date data set maintained by the Federal Reserve Bank of St. Louis.
Exercises are graded based on that instance of data, and feedback is provided.
■■ Pearson eText available within the online course materials and offline via
an app. The eText allows instructors and students to highlight, bookmark,
and take notes.
■■ Auto graded problems and graphs for assignments.
■■ A powerful gradebook, flexible and rich with information, including student and class data on assignment performance and time on task.
■■ Advanced communication tools provides students and instructors the capability to communicate through e-mail, discussion board, chat, and ClassLive.
■■ Customization options provide new and enhanced ways to share documents, add content, and rename menu items.
■■ One place for students to access all of their MyLab courses. Students and
instructors can register, create, and access all of their MyLab courses,
regardless of discipline, from one convenient online location: www.pearsonmylab.com.
■■
For more information, please visit www.myeconlab.com.
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Preface
21
Acknowledgments
All texts are team efforts, even single-author texts. I owe a debt of gratitude to a
large number of people. At San Diego State University, I have benefited from the
opportunity to teach and converse with a wide range of students. My colleagues
in San Diego and across the border in Mexico have been extremely helpful. Their
comments and our conversations constantly push me to think about the core economic ideas that should be a part of a college student’s education, and to search
for ways to explain the relevance and importance of those ideas with greater clarity and precision. Any failure in this regard is, of course, mine alone.
I am deeply grateful to Neeraj Bhalla, Nicole Suddeth, Sree Meenakshi R, and
the MyLab Economics team.
Finally, my gratitude goes to the numerous reviewers who have played an essential role in the development of International Economics. Each of the following individuals reviewed the manuscript, many of them several times, and provided useful
commentary. I cannot express how much the text has benefited from their comments.
Mary Acker
Iona College
Laura Brown
University of Manitoba
Jeff Ankrom
Wittenberg University
Albert Callewaert
Walsh College
David Aschauer
Bates College
Tom Carter
Oklahoma City University
H. Somnez Atesoglu
Clarkson University
Srikanta Chatterjee
Massey University, New
Zealand
Titus Awokuse
University of Delaware
Craig Depken II
University of North
Carolina, Charlotte
John Devereaux
University of Miami
K. Doroodian
Ohio University
Carolyn Evans,
Santa Clara University
Jen-Chi Cheng
Wichita State University
Noel J. J. Farley
Bryn Mawr College
Don Clark
University of Tennessee
Ora Freedman
Stevenson University
Richard T. Baillie
Michigan State University
Raymond Cohn
Illinois State University
Mina Baliamoune-Lutz,
University of North Florida
Peter Crabb
Northwest Nazarene
University
Lewis R. Gale IV
University of Southwest
Louisiana
Mohsen Bahmani-Oskooee
University of Wisconsin,
Milwaukee
Eugene Beaulieu
University of Calgary
Ted Black
Towson University
Bruce Blonigen
University of Oregon
Lee Bour
Florida State University
Byron Brown
Southern Oregon
University
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David Crary
Eastern Michigan
University
Al Culver
California State University,
Chico
Kevin Gallagher
Boston University
Ira Gang
Rutgers University
John Gilbert
Utah State University
James Giordano
Villanova University
Joseph Daniels
Marquette University
Amy Jocelyn Glass
Texas A&M University
Alan Deardorff
University of Michigan
Joanne Gowa
Princeton University
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22
Preface
Gregory Green
Idaho State University
Mary Lesser
Iona College
Raj Roy
University of Toledo
Thomas Grennes
North Carolina State
University
Benjamin H. Liebman
Saint Joseph’s University
Michael Ryan
Western Michigan
University
Winston Griffith
Bucknell University
Jane Hall
California State University,
Fullerton
Seid Hassan
Murray State University
F. Steb Hipple
East Tennessee State
University
Paul Jensen
Drexel University
Ghassan Karam
Pace University
George Karras
University of Illinois at
Chicago
Kathy Kelly
University of Texas,
Arlington
Abdul Khandker
University of Wisconsin, La
Crosse
Jacqueline Khorassani
Marietta College
Sunghyun Henry Kim
Brandeis University
Vani Kotcherlakota
University of Nebraska at
Kearney
Corrine Krupp
Michigan State University
Susan Linz
Michigan State University
Marc Lombard
Macquarie University,
Australia
Thomas Lowinger
Washington State University
Nicolas Magud
University of Oregon
Bala Maniam
Sam Houston State
University
George Samuels
Sam Houston State
University
Craig Schulman
University of Arizona
William Seyfried
Winthrop University
Eckhard Siggel
Concordia University
David Spiro
Columbia University
Mary McGlasson
Arizona State University
Richard Sprinkle
University of Texas, El Paso
Joseph McKinney
Baylor University
Ann Sternlicht
Virginia Commonwealth
University
Judith McKinney
Hobart & William Smith
Colleges
Howard McNier
San Francisco State
University
Michael O. Moore
George Washington
University
Stephan Norribin
Florida State University
William H. Phillips
University of South Carolina
Frank Raymond
Bellarmine University
Donald Richards
Indiana State University
Leonie Stone
State University of New
York at Geneseo
Carolyn Fabian Stumph
Indiana University, Purdue
University, Fort Wayne
Rebecca Summary
Southeast Missouri State
University
Jack Suyderhoud
University of Hawaii
Kishor Thanawala
Villanova University
Henry Thompson
Auburn University
Cynthia Tori
Valdosta State University
Kishore Kulkarni
Metropolitan State College
of Denver
John Robertson
University of Kentucky
Community College System
Farrokh Langdana
Rutgers University
Jeffrey Rosensweig
Emory University
Ross vanWassenhove
University of Houston
Marina Rosser
James Madison University
Jose Ventura
Sacred Heart University
Daniel Y. Lee
Shippensburg University
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Edward Tower
Duke University
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Preface
Craig Walker
Oklahoma Baptist
University
Michael Welker
Franciscan University
Jerry Wheat
Indiana State University
Chong K. Yip
Georgia State University
Laura Wolff
Southern Illinois University,
Edwardsville
Alina Zapalska
Marshall University
23
Pearson would like to thank the following people for their work on the Global
Edition:
Gabriela Sterian
Romanian-American University
Kwan Wai KO
The Chinese University of Hong Kong
Michael Graff
KOF Swiss Economic Institute
Carsten Küchler
Lucerne School of Business
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