International Economics / Edition 6

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A principles-level introduction to international economics that is accessible to all majors. This book is also suitable for readers interested in the field of international economics.

International Economics
uses a rich array of case studies to illuminate economic institutions and policies as well as recent developments in the global economy—without readers having to rely on a prerequisite knowledge of higher-level math. Further, the book’s flexible approach—with self-contained chapters and comprehensive coverage—allows instructors to adapt the text easily to a wide range of syllabi.

The sixth edition preserves the organization and coverage of the fifth edition and adds a number of updates and enhancements. All tables and graphs have been updated and every chapter begins with a list of student learning outcomes. Chapter 13, The United States in the World Economy, is heavily revised and refocused towards U.S. international economic relations, including NAFTA, but adds material on other trade agreements, including a new case study on preferential agreements such as the African Growth and Opportunity Act.

Available with the award-winning MyEconLab!

MyEconLab is a powerful assessment and tutorial system that works hand-in-hand with International Economics.¿MyEconLab includes comprehensive homework, quiz, test, and tutorial options, where instructors can manage all assessment needs in one program!¿


Note: If you are purchasing the standalone text (ISBN: 0132948915) or electronic version, MyEconLab does not come automatically packaged with the text. To purchase MyEconLab, please visit: or you can purchase a package of the physical text + MyEconLab by searching the Pearson Higher Education web site. MyEconLab is not a self-paced technology and should only be purchased when required by an instructor.

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Product Details

  • ISBN-13: 9780132948913
  • Publisher: Prentice Hall
  • Publication date: 1/11/2013
  • Edition description: New Edition
  • Edition number: 6
  • Pages: 504
  • Sales rank: 471,796
  • Product dimensions: 7.50 (w) x 9.20 (h) x 0.90 (d)

Meet the Author

James Gerber received his PhD in Economics from the University of California, Davis. He is Professor of Economics and Director of the Center for Latin American Studies (CLAS), a US Department of Education National Resource Center, at San Diego State University. He has been a visiting scholar and lecturer at several institutions, including the University of Calgary, the Colegio de la Frontera Norte in Tijuana, the Universidad Autónoma de Baja California Sur in La Paz, Mexico, and the Center for US-Mexican Studies at the University of California, San Diego. His current research examines economic development along the U.S.-Mexico border since 1950, while his most recent publication is the co-edited volume, Agricultural and Rural Connections in the Pacific, 1500-1900. He is the author of International Economics, now in its third edition, and numerous articles on North American integration. Dr. Gerber teaches several courses in the Latin American Studies program, including courses on research methodology, economic policy reform, economic integration, and introduction to Latin American Studies.

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Table of Contents


1. The United States in a Global Economy

Introduction: International Economic Integration

Elements of International Economic Integration

Twelve Themes in International Economics


Study Questions

2. International Economic Institutions since World War II

Introduction: International Institutions and Issues since World War II

The IMF, the World Bank, and the WTO

Regional Trade Agreements

The Role of International Economic Institutions

Criticism of International Institutions Summary


Study Questions


3. Comparative Advantage and the Gains from Trade

Introduction: The Gains from Trade

Comparative Productivity Advantage and the Gains from Trade

Absolute and Comparative Productivity Advantage Contrasted

Gains from Trade with No Absolute Advantage

Comparative Advantage and “Competitiveness”

Economic Restructuring



Study Questions

4. Comparative Advantage and Factor Endowments

Introduction: The Determinants of Comparative Advantage

Modern Trade Theory

Trade and Income Distribution

Empirical Tests of the Theory of Comparative Advantage

Extension of the Heckscher-Ohlin Model

The Impact of Trade on Wages and Jobs



Study Questions

5. Beyond Comparative Advantage

Introduction: More Reasons to Trade

Intraindustry Trade

Trade and Geography

Industrial Policy



Study Questions

6. The Theory of Tariffs and Quotas

Introduction: Tariffs and Quotas

Analysis of Quotas



Study Questions

7. Commercial Policy

Introduction: Commercial Policy, Tariffs, and Arguments for Protection

Why Nations Protect Their Industries

The Politics of Protection in the United States



Study Questions

8. International Trade and Labor and Environmental Standards

Introduction: Income and Standards

Setting Standards: Harmonization, Mutual Recognition, or Separate?

Labor Standards

Trade and the Environment

Alternatives to Trade Measures



Study Questions


9. Trade and the Balance of Payments

Introduction: The Current Account

The Current Account and the Macro economy

International Debt

The International Investment Position



Study Questions

Appendix A Measuring the International Investment Position

Appendix B Balance of Payments Data

10. Exchange Rates and Exchange Rate Systems

Introduction: Fixed, Flexible, or In-Between?

Exchange Rates and Currency Trading

The Supply and Demand for Foreign Exchange

The Real Exchange Rate

Alternatives to Flexible Exchange Rates

Fixed Exchange Rate Systems

Choosing the Right Exchange Rate System

Single Currency Areas



Study Questions

Appendix The Interest Rate Parity Condition

11. An Introduction to Open Economy Macroeconomics

Introduction: The Macroeconomy in a Global Setting

Aggregate Demand and Aggregate Supply

Fiscal and Monetary Policies

Current Account Balances Revisited

Macro Policies for Current Account Imbalances

Macroeconomic Policy Coordination in Developed Countries



Study Questions

12. International Financial Crises

Introduction: The Challenge to Financial Integration

Definition of a Financial Crisis

Sources of International Financial Crises

Domestic Issues in Crisis Avoidance

Domestic Policies for Crisis Management

Reform of the International Financial Architecture



Study Questions


13. The United States in the World Economy

Introduction: A New World Economy

Background and Context

The NAFTA Model

New and Old Agreements



Study Questions

14. The European Union: Many Markets into One

Introduction: The European Union

The Size of the European Market

The European Union and Its Predecessor

Deepening and Widening the Community in the 1970s and 1980s

The Second Wave of Deepening: The Single European Act

The Third Wave of Deepening: The Maastricht Treaty

Monetary Union and the Euro

Widening the European Union

The Demographic Challenge of the Future



Study Questions

15. Trade and Policy Reform in Latin America

Introduction: Defining a “Latin American” Economy

Population, Income, and Economic Growth

Import Substitution Industrialization

Macroeconomic Instability and Economic Populism

The Debt Crisis of the 1980s

Neoliberal Policy Reform and the “Washington Consensus”



Study Questions

16. Export-Oriented Growth in East Asia

Introduction: The High-Performance Asian Economies

Population, Income, and Economic Growth

General Characteristics of Growth in the HPAE

The Institutional Environment

The Role of Industrial Policies

The Role of Manufactured Exports

Is There an Asian Model of Economic Growth?



Study Questions

17. The BRIC Countries in the World Economy

Introduction: The BRICs

Demographic and Economic Characteristics

Economic reform in the BRIC economies

The BRICs in the World Economy

The Challenges of the BRICs in the World Economy



Study Questions

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