International Economics in the Age of Globalization

Written by Wilson B. Brown and Jan S. Hogendorn

© 2000

International Economics in the Age of Globalization provides the intellectual basis for an understanding of the increasingly integrated world economy. The requisite background is not solely economic theory, but includes the history and the purposes and workings of the organizations, laws, instruments, and customary practices in the international economy.

Economic theory is not limited to the abstract; its concern with institutions has both a practical and theoretical base. How can one evaluate a criticism of the World Trade Organization, a fear of the dangers of financial derivatives, the supposed freedom of a multinational firm, or the presumed unfairness of dumping without knowing both theory and institutions? Where did these institutions come from? What problems are they solving—as well as creating? This book's balance between theory and institutions is akin to texts in Public Expenditure or Money and Banking. The leading international economics texts, in contrast, push the real world into the background and present the subject as a more specialized intermediate theory course, accessible only to people who have a solid theoretical background. The result is that good discussions of many of the key issues in modern international economics simply are not available in the curriculum, or accessible to any but economics majors. This book aims to remedy that failing, challenging economics majors and non-majors alike. It will also be of value to students of business and public affairs and to the economic-literate general public.

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Product Details

  • World Rights
  • Page Count: 792 pages
  • Dimensions: 7.0in x 0.0in x 9.0in
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SKU# HE000151

  • PUBLISHED MAY 2000

    From: $64.60

    Regular Price: $76.00

    ISBN 9781551112619

Quick Overview

International Economics in the Age of Globalization provides the intellectual basis for an understanding of the increasingly integrated world economy.

International Economics in the Age of Globalization

Written by Wilson B. Brown and Jan S. Hogendorn

© 2000

International Economics in the Age of Globalization provides the intellectual basis for an understanding of the increasingly integrated world economy. The requisite background is not solely economic theory, but includes the history and the purposes and workings of the organizations, laws, instruments, and customary practices in the international economy.

Economic theory is not limited to the abstract; its concern with institutions has both a practical and theoretical base. How can one evaluate a criticism of the World Trade Organization, a fear of the dangers of financial derivatives, the supposed freedom of a multinational firm, or the presumed unfairness of dumping without knowing both theory and institutions? Where did these institutions come from? What problems are they solving—as well as creating? This book's balance between theory and institutions is akin to texts in Public Expenditure or Money and Banking. The leading international economics texts, in contrast, push the real world into the background and present the subject as a more specialized intermediate theory course, accessible only to people who have a solid theoretical background. The result is that good discussions of many of the key issues in modern international economics simply are not available in the curriculum, or accessible to any but economics majors. This book aims to remedy that failing, challenging economics majors and non-majors alike. It will also be of value to students of business and public affairs and to the economic-literate general public.

Continue Reading Read Less

Product Details

  • World Rights
  • Page Count: 792 pages
  • Dimensions: 7.0in x 0.0in x 9.0in
  • Author Information

    Wilson B. Brown is Professor of Economics at the University of Winnipeg. He holds a Ph.D. in International Affairs from the Fletcher School of Law and Diplomacy at Tufts University, has published books with Addison-Wesley and John Wiley, and has taught economics, marketing, and management. He held Fulbright grants to Peru and Thailand (Chiang Mai University) and has been a visiting scholar at the University of Reading.



    Jan S. Hogendorn is Grossman Professor of Economics at Colby College. He holds a Ph.D. from the London School of Economics and has published widely in economic history, with a special interest in West Africa. His books have been published by Oxford, Cambridge, Academic Press, HarperCollins, and Addison-Wesley. A fellow at Linacre College at Oxford, he has been a visiting scholar at the University of Birmingham, Ahmadu Bello University in Nigeria, and Bosporos University in Turkey.

  • Table of contents

    1. The Nature of International Economics

    Globalization
    International Economics in Daily Life
    The Growth of Economic Interdependence
    Statistics with Some Grains of Salt
    Looking Forward
    Vocabulary and Concepts / Questions
    Notes

    Part I: International Trade

    2. The Theory of Comparative Advantage

    The Gains from Trade in General Equilibrium
    The Gains from Trade in Partial Equilibrium
    Relaxing the Assumptions
    Conclusion
    Appendix: Offer Curves
    Vocabulary and Concepts / Questions
    Notes

    3. The Sources of Comparative Advantage

    Factor Proportions: The Heckscher-Olin Model
    Two Challenges to the Heckscher-Olin Model
    Why Trade Arises among Similar Countries
    Segmented Markets as an Explanation for Trade
    What Could Trigger the Direction of Specialization?
    Dislocation and Intraindustrial Trade
    Conclusion
    Vocabulary and Concepts / Questions
    Notes

    4. Tariffs, Quotas, and VERs

    Tariffs
    Analysis of Tariffs: Their Effects
    Quotas and Their Economic Effects
    Voluntary Export Restraints
    Appendix: The Terms-of-Trade Effect in General Equilibrium
    Vocabulary and Concepts / Questions
    Notes

    5. The Face of Modern Protectionism

    Subsidy and Tax Issues
    Administrative Protection
    Technical, Health, Safety, and Environmental Standards
    How Can Distortions To Trade Be Compared?
    Playing the Protectionist Instruments
    Conclusion
    Vocabulary and Concepts / Questions
    Notes

    6. The Political Economy of Trade Barriers

    A Short History of Trade Policy
    The Uruguay Round and the World Trade Organization
    Why Do Countries Persist in Protectionism?
    The Arguments for Trade Barriers
    Conclusion
    Vocabulary and Concepts / Questions

    Notes

    7. Unfair Trade Practices

    Dumping
    Subsidies
    Other Unfair Trade Practices
    Conclusion
    Vocabulary and Concepts / Questions
    Notes

    8. National Trade Policies

    Managed Trade
    Strategic Trade Policy
    Japanese Use of a National Trade Strategy
    Adjusting to Trade as a National Strategy
    Trade Sanctions
    Vocabulary and Concepts / Questions
    Notes

    9. Economic Integration

    The Types of Economic Integration
    The Great Debate: Trade Creation or Trade Diversion
    Dynamic Effects of Economic Integration
    A Checklist of Conditions for Welfare Improvement
    The Major Examples of Economic Integration
    Very Large PTAs
    PTAs with a Rich Patron
    Regional Trade Arrangements in the LDCs
    Foreign Trade Zones: Little Bits of Free Trade
    Conclusion
    Vocabulary and Concepts / Questions
    Notes

    Part II: International Macroeconomics: Saving, Growth, and Finance

    10. Saving, Investment, and the Trade Balance

    How Can Countries Have Trade Imbalances?
    The Three Real Imbalances: Imports-Exports, Saving-Investment, and Output-Absorption
    Financial Markets: Borrowing and Lending
    Trade Imbalances as Problems and Symptoms
    Total Investment Equals Total Savings
    The International Capital Market and National Saving
    Government Savings and Trade Deficits: The Twin Deficit Question
    Private Saving
    Conclusion
    Appendix: Where to Find the Numbers
    Vocabulary and Concepts / Questions
    Notes

    11. The Balance of Payments

    Why Study the Balance of Payments?
    What a Balance-of-Payments Statement Shows
    Balance-of-Payments Accounting
    The Structure of the Balance of Payments
    Using Balance-of-Payments Statements as Analytical Tools
    The World Deficit
    Conclusion
    Vocabulary and Concepts / Questions
    Notes

    12. Income and Price Effects

    Income and Price Changes
    Income Effects
    Some International Implications
    Price and Income: Two Intriguing Cases
    Conclusion
    Vocabulary and Concepts / Questions
    Notes

    13. Interest Rates, Prices, and Foreign Exchange

    The Foreign Exchange Market
    The Vast Sums Traded
    Interest Rate Parity
    The Longer Run: Price Levels and Purchasing Power Parity
    International and Domestic Financial Markets
    Conclusion
    Vocabulary and Concepts / Questions
    Notes

    14. Money in the Global Economy

    Three Ways of Looking at Money's Relation to Real Output
    Modeling the Effects of Money Supply
    Markets for Funds and Markets for Liquidity
    Monetary Policy
    National Money Supplies and Global Flows
    The Role of Money in Correcting Serious Balance-of-Payments Difficulties
    The Problem of Large Capital Flows
    Monetary and Fiscal Policy Together
    Conclusion
    Vocabulary and Concepts / Questions
    Notes

    15. Exchange Rate Adjustment

    What Countries Really Do
    The Role of the Exchange Rate in Adjusting to Payments Difficulties
    Exchange Control
    The Once-and-for-all Devaluation after Great Inflation
    Revaluation (Upward Valuation)
    Price Sensitivity: What Happens When Price Effects Work Slowly
    Exchange Rate Changes and the EXIN Model
    Conclusion
    Vocabulary and Concepts / Questions
    Notes

    16. International Financial Markets

    The Functions of Financial Markets
    The Advantages of Large Markets
    An Overview of the International Markets
    Eurodollars, T-accounts, and Monetary Expansion
    Derivative and Swap Markets
    Continuing Changes in the International Capital Market
    Implications of the Changes
    Conclusion
    Vocabulary and Concepts / Questions
    Notes

    17. International Monetary Institutions (I)

    The International System under the Gold Standard
    The 1920s: Pegged Exchange Rates
    The Great Depression
    The Bretton Woods System: 1947-1973
    Reserve Currencies
    Special Drawing Rights
    Borrowing Swap Lines
    The End of the Bretton Woods System
    The Bretton Woods System: An Assesment
    Vocabulary and Concepts / Questions
    Notes

    18. International Monetary Institutions (II)

    The Oil Crises
    Floating Exchange Rates
    The Debt Crisis
    Currencies and Governments: How Many Currencies?
    Deja Vu All Over Again
    Vocabulary and Concepts / Questions
    Notes

    19. Multinational Firms, Foreign Direct Investment, and Globalization
    Foreign Direct Investment and the Multinational Firm
    FDI in Recent Years
    The Theory of Foreign Direct Investment
    Possible Reasons for the Recent Increase in FDI
    Extent of the Firm's Freedom from Market Constraints
    Issues MNFs Raise
    Conclusion
    Vocabulary and Concepts / Questions
    Notes
     
    Index

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