Applied International Economics, 4th Edition offers a modern and accessible treatment of international economics, shifting the emphasis from pure theory to the application of theory by using some of the key tools of economic analysis. This new edition of the text formerly known as International Economics makes the real-life application of international economics clearer than ever before, and focuses on the basics that students will need in order to analyse information on the world economy throughout their future careers.
The new edition has been refocused, revised and thoroughly updated. Key features include:
A new chapter on the firm in international trade accompanies a greater focus on firms in the world economy, how trade influences income inequality and how businesses can apply principles of international economics.�
New or expanded chapter subsections on topics including the intersection of international economics and international business; money, interest rates, and the exchange rate; and the dynamic gains from trade.
Replacement and expansion of case studies to bring them fully up to date.
Chapters on economic development in both the international trade and finance sections on the book to reflect the increasing importance of low- and middle-income countries in the world economy.
A streamlined treatment of Purchasing Power Parity, leading into the concept of the real exchange rate.�
Expanded treatment of the Eurozone and the Eurozone crisis.
Written in a thorough and engaging style, the book covers topics at a level appropriate for students specializing in business or international relations, as well as for economics students. Along with a wealth of case studies and real-life examples, the book offers extensive pedagogy including a companion website, end of chapter summaries, explanations of key concepts and terms, problem sets and additional readings.
W. Charles Sawyer is the Hal Wright Professor of Latin American Economics at Texas Christian University, USA. Richard L. Sprinkle is Professor of Economics at University of Texas at El Paso, USA.
1. Introduction: An overview of the world economy 2. Why countries trade 3. Comparative advantage and the production possibilities frontier 4. Factor endowments and the commodity composition of trade 5. Intra-industry trade 6. The firm in the world economy 7. International factor movements 8. Tarrifs 9. Nontariff distortions to trade 10. International trade policy 11. Regional economic arrangements 12. International trade and economic growth 13. National income accounting and the balance of payments 14. Exchange rates and their determination: A basic model 15. Money, interest rates, and the exchange rate 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