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International economics 7th global edition jame gerber

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International Economics

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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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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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