| |
| |
Preface | |
| |
| |
About the Authors | |
| |
| |
| |
An Introduction to International Trade | |
| |
| |
Characteristics of National Economies | |
| |
| |
Economic Growth | |
| |
| |
International Trade | |
| |
| |
The Direction of International Trade | |
| |
| |
What Goods Do Countries Trade? | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
Internet Applications | |
| |
| |
| |
Tools of Analysis for International Trade Models | |
| |
| |
Some Methodological Preliminaries | |
| |
| |
The Basic Model: Assumptions | |
| |
| |
The Basic Model: Solutions | |
| |
| |
Measuring National Welfare | |
| |
| |
National Supply and Demand | |
| |
| |
| |
Measurement of Real Income | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
Internet Applications | |
| |
| |
| |
The Classical Model of International Trade | |
| |
| |
Absolute Advantage as a Basis for Trade: Adam Smith's Model | |
| |
| |
Comparative Advantage as a Basis for Trade: David Ricardo's Model | |
| |
| |
The General Equilibrium Solution of the Classical Model | |
| |
| |
The Gains from International Trade | |
| |
| |
| |
Japan's Gains from Entry into World Trade in 1858 | |
| |
| |
The Relationship Between Trade and Wages | |
| |
| |
| |
Wage and Productivity Comparisons for the United States and Mexico | |
| |
| |
An Evaluation of the Classical Model | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
Internet Applications | |
| |
| |
| |
The Classical Model with Many Goods | |
| |
| |
| |
Offer Curves and the Terms of Trade | |
| |
| |
| |
The Heckscher-Ohlin Model | |
| |
| |
The HO Model: Basic Assumptions | |
| |
| |
| |
Capital/Labor Ratios of Selected U.S. Industries | |
| |
| |
| |
Capital/Labor Ratios of Selected Countries | |
| |
| |
The HO Theorem | |
| |
| |
Equilibrium in the HO Model | |
| |
| |
Some New HO Theorems | |
| |
| |
| |
Trade, Wages, and Jobs in the U.S. Economy | |
| |
| |
Some Final Observations | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
Internet Applications | |
| |
| |
| |
Alternate Proofs of Selected HO Theorems | |
| |
| |
| |
The Specific Factors Model | |
| |
| |
| |
Tests of Trade Models: The Leontief Paradox and Its Aftermath | |
| |
| |
Tests of the Classical Model | |
| |
| |
Tests of the HO Model | |
| |
| |
Attempted Reconciliations of Leontief's Findings | |
| |
| |
Other Tests of the HO Model | |
| |
| |
Recent Tests of the HO Model | |
| |
| |
Alternative Theories of Comparative Advantage | |
| |
| |
Human Skills Theory | |
| |
| |
Product Life Cycle Theory | |
| |
| |
Similarity of Preferences Theory | |
| |
| |
Intraindustry Trade | |
| |
| |
Increasing Returns and Imperfect Competition | |
| |
| |
Conclusions | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
References | |
| |
| |
Internet Applications | |
| |
| |
| |
Tariffs | |
| |
| |
The Gains from Free Trade | |
| |
| |
Tariffs: An Introduction | |
| |
| |
Tariffs: An Economic Analysis | |
| |
| |
The Gains from Free Trade: One More Time | |
| |
| |
The Welfare Cost of Tariffs | |
| |
| |
Some Complications | |
| |
| |
| |
The Welfare Costs of Tariffs: Estimates from Certain U.S. Industries | |
| |
| |
The Optimal Tariff | |
| |
| |
| |
The Smoot-Hawley Tariff and Its Aftermath | |
| |
| |
How High Are Tariffs? | |
| |
| |
Effective Rate of Protection | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
References | |
| |
| |
Internet Applications | |
| |
| |
| |
Nontariff Barriers and Arguments for Protection | |
| |
| |
Quotas | |
| |
| |
The Welfare Effects of Quotas | |
| |
| |
The Equivalence or Nonequivalence of Tariffs and Quotas | |
| |
| |
Other Nontariff Barriers | |
| |
| |
Export Subsidies | |
| |
| |
Government Procurement Policies | |
| |
| |
Health and Safety Standards | |
| |
| |
Failure to Protect Intellectual Property Rights | |
| |
| |
How Important Are Nontariff Barriers? | |
| |
| |
Arguments for Protection | |
| |
| |
Invalid Arguments | |
| |
| |
Valid Arguments | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
References | |
| |
| |
Internet Applications | |
| |
| |
| |
Commercial Policy: History and Practice | |
| |
| |
History of U.S. Commercial Policy | |
| |
| |
| |
The GATT Agreement | |
| |
| |
The Uruguay Round and the Creation of the WTO | |
| |
| |
| |
U.S. Tuna Quotas to Save Dolphins | |
| |
| |
The Doha Round | |
| |
| |
The Conduct of U.S. Commercial Policy | |
| |
| |
Dumping | |
| |
| |
Antidumping Law | |
| |
| |
Countervailing Duty Law | |
| |
| |
| |
Canada Softwood Lumber | |
| |
| |
Unfair Foreign Practices: Section 301 | |
| |
| |
The Escape Clause: Section 201 | |
| |
| |
| |
Escape Clause Tariffs on U.S. Steel Imports | |
| |
| |
Other Measures | |
| |
| |
Comparisons with Policies in Other Countries | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
References | |
| |
| |
Internet Applications | |
| |
| |
| |
Preferential Trade Arrangements | |
| |
| |
Preferential Trade Arrangements: Economic Analysis | |
| |
| |
North American Free Trade Agreement | |
| |
| |
NAFTA and the U.S. Economy: Twelve Years Later | |
| |
| |
| |
Details of the NAFTA | |
| |
| |
European Union | |
| |
| |
The EU Government | |
| |
| |
The Europe 1992 Initiative | |
| |
| |
Regionalism versus Multilateralism | |
| |
| |
| |
Other Preferential Trade Arrangements | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
References | |
| |
| |
Internet Applications | |
| |
| |
| |
International Trade and Economic Growth | |
| |
| |
Trade and Development | |
| |
| |
Primary-Export-Led Development Policies | |
| |
| |
Import-Substitution Development Policies | |
| |
| |
Outward-Looking Development Policies | |
| |
| |
Trade and Growth | |
| |
| |
Trade and Growth: Some Additional Comments | |
| |
| |
Technological Change | |
| |
| |
Growth, Prices, and Welfare | |
| |
| |
| |
The Dutch Disease | |
| |
| |
International Flows of Factors | |
| |
| |
Labor | |
| |
| |
Capital | |
| |
| |
Economic Analysis | |
| |
| |
| |
U.S. Outsourcing | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
References | |
| |
| |
Internet Applications | |
| |
| |
| |
An Introduction to International Finance | |
| |
| |
The Balance of Payments | |
| |
| |
Exchange Rates | |
| |
| |
Prices and Exchange Rates | |
| |
| |
Interest Rates and Exchange Rates | |
| |
| |
Additional Major Topics | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
Internet Applications | |
| |
| |
| |
The Balance of Payments | |
| |
| |
Current Account | |
| |
| |
Financing the Current Account: The Financial Account | |
| |
| |
National Saving, Investment, and the Current Account | |
| |
| |
| |
The World's Largest Debtor | |
| |
| |
Additional Summary Measures | |
| |
| |
Transactions Classification | |
| |
| |
Balance-of-Payments Equilibrium and Adjustment | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
References | |
| |
| |
Internet Applications | |
| |
| |
| |
The Foreign-Exchange Market | |
| |
| |
Spot Rates | |
| |
| |
Arbitrage | |
| |
| |
Forward Rates | |
| |
| |
Swaps | |
| |
| |
The Futures Market | |
| |
| |
Foreign-Currency Options | |
| |
| |
Exchange Rate Supply and Demand and Central-Bank Intervention | |
| |
| |
Black Markets and Parallel Markets | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
References | |
| |
| |
Internet Applications | |
| |
| |
| |
Exchange Rate Indexes | |
| |
| |
| |
Prices and Exchange Rates: Purchasing Power Parity | |
| |
| |
Absolute Purchasing Power Parity | |
| |
| |
| |
The U.S. Consumer Price Index | |
| |
| |
Relative Purchasing Power Parity | |
| |
| |
Time, Inflation, and PPP | |
| |
| |
| |
Hyperinflation in Bolivia | |
| |
| |
Deviations from PPP | |
| |
| |
"Overvalued" and "Undervalued" Currencies | |
| |
| |
Real Exchange Rates | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
References | |
| |
| |
Internet Applications | |
| |
| |
| |
Exchange Rates, Interest Rates, and Interest Parity | |
| |
| |
Interest Parity | |
| |
| |
Interest Rates and Inflation | |
| |
| |
| |
Lenders and Borrowers, Losers and Winners | |
| |
| |
Exchange Rates, Interest Rates, and Inflation | |
| |
| |
Expected Exchange Rates and the Term Structure of Interest Rates | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
References | |
| |
| |
Internet Applications | |
| |
| |
| |
Taxation and Interest Rate Parity | |
| |
| |
| |
Foreign-Exchange Risk, Forecasting, and International Investment | |
| |
| |
Types of Foreign-Exchange Risk | |
| |
| |
Foreign-Exchange Risk Premium | |
| |
| |
Market Efficiency | |
| |
| |
Foreign-Exchange Forecasting | |
| |
| |
International Investment and Portfolio Diversification | |
| |
| |
Direct Foreign Investment | |
| |
| |
Capital Elight | |
| |
| |
Capital Inflow Issues | |
| |
| |
International Lending and Crises | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
References | |
| |
| |
Internet Applications | |
| |
| |
| |
Basic Theories of the Balance of Payments | |
| |
| |
The Elasticities Approach to the Balance of Trade | |
| |
| |
Elasticities and J Curves | |
| |
| |
The Currency-Contract Period | |
| |
| |
The Pass-Through Period | |
| |
| |
| |
The Pass-Through Effect and Profits | |
| |
| |
The Evidence from Devaluations | |
| |
| |
The Absorption Approach | |
| |
| |
The Monetary Approach to the Balance of Payments | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
References | |
| |
| |
Internet Applications | |
| |
| |
| |
Stable Foreign-Exchange Markets and the Marshall-Lerner Condition | |
| |
| |
| |
Exchange Rate Theories | |
| |
| |
The Asset Approach | |
| |
| |
The Monetary Approach | |
| |
| |
The Portfolio Balance Approach | |
| |
| |
Sterilization | |
| |
| |
Exchange Rates and the Trade Balance | |
| |
| |
Overshooting Exchange Rates | |
| |
| |
Currency Substitution | |
| |
| |
The Role of News | |
| |
| |
Foreign-Exchange Market Microstructure | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
References | |
| |
| |
Internet Applications | |
| |
| |
| |
Alternative International Monetary Standards | |
| |
| |
The Gold Standard: 1880-1914 | |
| |
| |
The Interwar Period: 1918-1939 | |
| |
| |
The Gold Exchange Standard: 1944-1970 | |
| |
| |
| |
The International Monetary Fund | |
| |
| |
The Transition Years: 1971-1973 | |
| |
| |
Floating Exchange Rates: Since 1973 | |
| |
| |
The Choice of an Exchange Rate System | |
| |
| |
Optimum Currency Areas | |
| |
| |
The European Monetary System and the Euro | |
| |
| |
Target Zones | |
| |
| |
Currency Boards | |
| |
| |
| |
Speculative Attacks and the Mexican and Asian Financial Crises | |
| |
| |
International Reserve Currencies | |
| |
| |
Multiple Exchange Rates | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
References | |
| |
| |
Internet Applications | |
| |
| |
| |
International Banking, Debt, and Risk | |
| |
| |
The Origins of Offshore Banking | |
| |
| |
| |
Libor | |
| |
| |
International Banking Facilities | |
| |
| |
Offshore Banking Practices | |
| |
| |
International Debt | |
| |
| |
| |
Islamic Banking | |
| |
| |
IMF Conditionality | |
| |
| |
The Role of Corruption | |
| |
| |
Country-Risk Analysis | |
| |
| |
| |
Blocked Funds | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
References | |
| |
| |
Internet Applications | |
| |
| |
| |
Open-Economy Macroeconomic Policy and Adjustment | |
| |
| |
Internal and External Macroeconomic Equilibrium | |
| |
| |
The IS Curve | |
| |
| |
The LM Curve | |
| |
| |
The BP Curve | |
| |
| |
Equilibrium | |
| |
| |
Monetary Policy under Fixed Exchange Rates | |
| |
| |
Fiscal Policy under Fixed Exchange Rates | |
| |
| |
Monetary Policy under Floating Exchange Rates | |
| |
| |
Fiscal Policy under Floating Exchange Rates | |
| |
| |
The New Open-Economy Macroeconomics | |
| |
| |
International Policy Coordination | |
| |
| |
| |
The Plaza Agreement | |
| |
| |
The Open-Economy Multiplier | |
| |
| |
Summary | |
| |
| |
Exercises | |
| |
| |
References | |
| |
| |
Internet Applications | |
| |
| |
Glossary | |
| |
| |
Index | |