Includes index.

International Trade Theory -- The Law of Comparative Advantage -- The Standard Theory of International Trade -- Demand and Supply, Offer Curves, and the Terms of Trade -- Factor Endowments and the Heckscher-Ohlin Theory --Economies of Scale, Imperfect Competition, and International Trade -- Economic Growth and International -- International Trade Policy -- Trade Restrictions: Tariffs -- Nontariff Trade Barriers and the New Protectionism -- Economic Integration: Customs Unions and Free Trade Areas -- International Trade and Economic Development -- International Resource Movements and Multinational Corporations -- Foreign Exchange Markets, Exchange Rates, and the Balance of Payments -- Foreign Exchange Markets and Exchange Rates -- Balance of Payments -- Open Economy Macroeconomics: Adjustment in the Balance of Payments and Domestic Stability -- Price Adjustment Mechanisms Under a Flexible and a Fixed Exchange Rate System -- Income Adjustment Mechanism and Synthesis of Automatic Adjustments -- Open Economy Macroeconomics: Adjustment Policies -- The Monetary and Portfolio Balance Approaches -- Flexible versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination -- The International Monetary System: Past and Present.

This is the second edition of a text that has enjoyed a very gratifying market success, having been used in over 150 colleges and universities throughout the United States, Canada, and other English speaking countries. All of the features that made the first edition one of the leading texts in the United States have been retained in the second edition, but the content has been thoroughly updated and expanded to include many new significant topics.
The following are among the new topics included in the second edition: the specific-factors model, growth with factor immobility, trade in differentiated products, the rise of trade protectionism, the international debt, exchange rate dynamics, exchange rate futures and options, efficiency of the foreign exchange markets, the Eurobond and Euronote markets, and the portfolio balance approach.