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International Economics: Theory and Policy is the best-selling textbook in the field written by two of the world's leading economists, Paul R. Krugman of Princeton University and Maurice Obstfeld of the University of California, Berkeley.

The Sixth Edition provides an up-to-date and understandable analytical framework for illuminating current events and new research findings in the dynamic field of international economics.

This new edition has been thoroughly revised to reflect the changes of today's global economic landscape, including the unprecedented expansion of globalization, the increasingly crucial nature of international economic relations, the gains from trade, and recent anti-globalization controversies such as the continuing debate over the optimal level of trade.

Consistent with previous editions, the authors also present an integrated treatment of the Ricardian model, specific factors, factor endowments, and imperfect competition models of trade, along with in-depth analysis of empirical evidence. They cover the effects and causes of trade policy and the income-distribution effects of trade, and also provide a unified model of open-economy macroeconomics, based on an asset-market approach to exchange rate determination with a central role for expectations.

1. Introduction

PART ONE: International Trade Theory

2. Labor Productivity and Comparative Advantage: The Ricardian Model
3. Specific Factors and Income Distribution
4. Resources and Trade: The Heckscher-Ohlin Model
5. The Standard Trade Model
6. Economies of Scale, Imperfect Competition, and International Trade
7. International Factor Movements

PART TWO: International Trade Policy

8. The Instruments of Trade Policy
9. The Political Economy of Trade Policy
10. Trade Policy in Developing Countries
11. Controversies in Trade Policy

PART THREE: Exchange Rates and Open-Economy Macroeconomics

12. National Income Accounting and the Balance of Payments
13. Exchange Rates and the Foreign Exchange Market: An Asset Approach
14. Money, Interest Rates, and Exchange Rates
15. Price Levels and the Exchange Rate in the Long Run
16. Output and the Exchange Rate in the Short Run
17. Fixed Exchange Rates and Foreign Exchange Intervention

PART FOUR: International Macroeconomic Policy

18. The International Monetary System, 1870-1973
19. Macroeconomic Policy and Coordination Under Floating Exchange Rates
20. Optimum Currency Areas and the European Experience
21. The Global Capital Market: Performance and Policy Problems
22. Developing Countries: Growth, Crisis, and Reform