- Shopping Bag ( 0 items )
This easy-to-read book emphasizes how to use basic economic theory and where to apply it to international economic issues. It empowers readers to understand the international economics they will encounter in business publications such as the Wall Street Journal, and to use international economics to make business decisions. The first half of the book covers international trade, factor movements, and trade and economic development; the final ten chapters on international finance can be divided into at least three parts: national income accounting and exchange rate determination; purchasing power parity and the real exchange rate; and open economy macroeconomics. A useful reference for government officials dealing with international trade and finance issues, and for private citizens who want to learn more about the effect of international economics on business in the 21st century.
1. Introduction: An Overview of the World Economy.
2. Why Countries Trade.
3. Factor Endowments and the Commodity Composition of Trade.
4. Intraindustry Trade.
5. International Factor Movements.
7. Nontariff Distortions to Trade.
8. International Trade Policy.
9. Regional Economic Agreements.
10. International Trade and Economic Growth.
11. National Income Accounting and the Balance of Payments.
12.International Transactions and Financial Markets.
13. Exchange Rates and Their Determination: A Basic Model.
14. Money, Interest Rates, and the Exchange Rate.
15. Price Levels and the Exchange Rate in the Long Run.
16. Output and the Exchange Rate in the Short Run.
17. Macroeconomic Policy and Floating Exchange Rates.
18. Fixed Exchange Rates and Currency Unions.
19. International Monetary Arrangements.
20. Capital Flows and the Developing Countries.
It is difficult to get through a day without the world economy touching our lives in some way. Everyday, we spend much of our time either consuming goods and services from or producing goods and services for other countries. Our exposure to the language of international economics is pervasive as terms like the exchange rate, trade balance, WTO, or NAFTA frequently appear in newspapers, magazines, news programs, and the Internet. In addition, the profitability of many businesses depends on their ability to effectively manage an increasingly global business environment. Governments also must deal with the world economy's influence on public policy. With international trade in goods and services in most countries becoming an increasingly large percentage of total economic activity, national governments find it essential to consider the international aspects of their policy.
Despite the importance of international economics, general knowledge about the subject is often superficial at best. This lack of understanding has resulted in an increasing number of students who are enrolling in international economics courses.
Until recently, international economics was a course that only economics majors who had completed courses in intermediate microeconomic and macroeconomic theory took. As international economics has become such an obviously important subject in business, government, and our daily lives, the enrollment in international economics courses has been increasing. This increase in enrollments is not due to a sudden boom in the number of economics majors. Rather, it is related to the growing umber of students taking thecourse who are not majoring in economics. Many business majors now take international economics as part of their core degree requirements, and the course has become a common elective course for MBA students attempting to get a more global perspective on business problems. The international economics course is a natural part of the curriculum for liberal arts students majoring in international or regional studies. Finally, an increasing number of political science or public administration students take the course as global economic conditions have increasingly important effects on the public sector. The diversity of students enrolled in international economics today is the main reason why we wrote International Economics.
Most international textbooks are written with two unstated assumptions. The first is that the students enrolled in the course are economics majors. The second is that most of these students need to learn international economics in a way that prepares them to take the next course in international economics. Increasingly, neither of these assumptions is correct as an ever-larger percentage of the students taking this course are not economics majors, and most economics majors are not planning to attend graduate school in economics. The typical economics major is headed for law school, an MBA program, or a career. A book designed to prepare students for graduate work in economics is not likely to serve the interests of economics majors much less nonmajors.
The reality is that most students studying international economics need to prepare for success in their chosen careers. To us this means two things. First, students need to learn the parts of international economic theory that they will most likely need to know for a career in the public or private sector. Second, learning some theory will not do these students much good if they cannot apply it. This book's approach is to apply basic economic theory to international economic issues. In one sense, the approach in International Economics is simpler because it is less purely theoretical. However, learning some economic theory, what the theory means, and how to use it is not so easy.
Our approach is driven by what we are trying to accomplish. Most students entering this course have only a vague understanding of the terminology associated with international economics. The main goal of International Economics is to guide students to the point in which they can easily understand any information on international economics that they may encounter in their careers. If students can understand and apply international economics, then they have a good chance of having a more successful career. Both of us have spent some time teaching in executive MBA programs and have found that the average midcareer manager knows little more about international economics than the typical junior in college. This lack of knowledge makes them uncomfortable and in many cases, may be costing them higher salaries and/or promotions. These students have been invaluable in teaching us what our younger students need to know before they start their careers: basic theory and how to apply it.
Most international economics textbooks are trying, in varying degrees, to do three things. First they are teaching some new theoretical tools. Second, they are teaching students how to apply these tools in a "real world" context. Finally, they are preparing students for further study in international economics. But teaching international economics to a diverse group of majors using a book designed for economics majors is like trying to juggle too many balls: It can lead to a lot of frustration. To make the course easier to teach and more useful to the new students taking this course, we have adopted a different pedagogical approach to the subject. Because most students taking this course have either had a one-semester survey course or the traditional two-semester principles of microeconomics and macroeconomics, the theory we use throughout this book to analyze economics is the same theory students have already learned in principles of economics. This approach accomplishes two things. First, instructors have to teach little if any "new" theory. This allows them to move at a much faster pace and cover much more of the subject than would be the case if they spent a substantial amount of class time teaching theory that many of the students have not been prepared to easily learn. Second, it becomes much easier to focus on applying the theory. Since the students are seeing the theory for the "second" time, they can spend more time on learning how to apply the theory and to use it in their careers.
The book employs a number of pedagogical features to reinforce this basic approach.
Beyond the book's basic approach and pedagogy, International Economics contains some content-oriented features that represent a somewhat different approach to teaching the course.
Instructor's Manual with testbank. The Instructor's Manual with testbank contains a chapter outline and summary for each chapter, answers to the end-of-chapter questions, lecture suggestions, and a complete bank of questions for quizzes and tests. The testbank is also available in a computerized format. The TestGen-EQ test generating software allows instructors to custom design, save, and generate classroom tests. The test program permits instructors to edit, add, or delete questions from the test banks; edit existing graphics and create new graphics;, analyze test results; and organize a database of tests and student results. This new software allows for greater flexibility and ease of use. It provides many options for organizing and displaying tests, along with a search and sort feature.
The Companion Web site is a content-rich, Web site with Internet exercises, activities, and resources related specifically to the first edition of International Economics. It includes the following features:
Online Study Guide. These practice quizzes for Sawyer and Sprinkle, prepared by Cecilia Winters of Manhattanville College, contain a variety of question types. The multiple choice questions test the students knowledge of the chapters' material, the essay questions further challenge the student to analyze concepts, and the internet exercises ask students to go to the web to research and analyze real world situations. The Online Study Guide grades each question submitted by the student, provides immediate feedback for correct and incorrect answers, and allows students to e-mail their results.