International Economics: Theory & Policy 11th Edition

2018 Pearson Education, Inc. 2018 Pearson Education, Inc. 2018 Pearson Education, Inc. Chapter 1 Introduction Chapter Organization What Is International Economics About? The Gains from Trade. The Pattern of Trade. How Much Trade? Balance of Payments. Exchange Rate Determination.

2018 Pearson Education, Inc. 2018 Pearson Education, Inc. 2018 Pearson Education, Inc. Chapter 10 The Political Economy of Trade Policy Chapter Organization The Case for Free Trade Free Trade and Efficiency Additional Gains from Free Trade Rent Seeking Political Argument for

2018 Pearson Education, Inc. 2018 Pearson Education, Inc. 2018 Pearson Education, Inc. Chapter 11 Trade Policy in Developing Countries Chapter Organization Import-Substituting Industrialization. The Infant Industry Argument. Promoting Manufacturing Through Protectionism. Case Study: Mexico Abandons Import-Substituting Industrialization. Results of Favoring Manufacturing: Problems

2018 Pearson Education, Inc. 2018 Pearson Education, Inc. 2018 Pearson Education, Inc. Chapter 12 Controversies in Trade Policy Chapter Organization Sophisticated Arguments for Activist Trade Policy. Technology and Externalities. Imperfect Competition and Strategic Trade Policy. Box: A Warning from Intels Founder.

2018 Pearson Education, Inc. 2018 Pearson Education, Inc. 2018 Pearson Education, Inc. Chapter 13 National Income Accounting and the Balance of Payments Chapter Organization The National Income Accounts. National Product and National Income. Capital Depreciation and International Transfers. Gross Domestic Product. National

2018 Pearson Education, Inc. 2018 Pearson Education, Inc. 2018 Pearson Education, Inc. Chapter 14 Exchange Rates and the Foreign Exchange Market: An Asset Approach Chapter Organization Exchange Rates and International Transactions. Domestic and Foreign Prices. Exchange Rates and Relative Prices. The Foreign Exchange

2018 Pearson Education, Inc. 2018 Pearson Education, Inc. 2018 Pearson Education, Inc. Chapter 15 Money, Interest Rates, and Exchange Rates Chapter Organization Money Defined: A Brief Review. Money as a Medium of Exchange. Money as a Unit of Account. Money as a

2018 Pearson Education, Inc. 2018 Pearson Education, Inc. 2018 Pearson Education, Inc. Chapter 16 Price Levels and the Exchange Rate in the Long Run Chapter Organization The Law of One Price. Purchasing Power Parity. The Relationship between PPP and the Law of One Price.

2018 Pearson Education, Inc. 2018 Pearson Education, Inc. 2018 Pearson Education, Inc. Chapter 17 Output and the Exchange Rate in the Short Run Chapter Organization Determinants of Aggregate Demand in an Open Economy. Determinants of Consumption Demand. Determinants of the Current Account.

2018 Pearson Education, Inc. Chapter 18 Fixed Exchange Rates and Foreign Exchange Intervention Chapter Organization Why Study Fixed Exchange Rates? Central Bank Intervention and the Money Supply. The Central Bank Balance Sheet and the Money Supply. Foreign Exchange Intervention and the Money Supply. Sterilization.

2018 Pearson Education, Inc. 2018 Pearson Education, Inc. 2018 Pearson Education, Inc. Chapter 19 International Monetary Systems: An Historical Overview Chapter Organization Macroeconomic Policy Goals in an Open Economy. Internal Balance: Full Employment and Price Level Stability. External Balance: The Optimal Level of

2018 Pearson Education, Inc. 2018 Pearson Education, Inc. 2018 Pearson Education, Inc. Chapter 2 World Trade: An Overview Chapter Organization Who Trades with Whom? Size Matters: The Gravity Model. Using the Gravity Model: Looking for Anomalies. Impediments to Trade: Distance, Barriers, and

2018 Pearson Education, Inc. Chapter 20 Financial Globalization: Opportunity and Crisis Chapter Organization The International Capital Market and the Gains from Trade. Three Types of Gains from Trade. Risk Aversion. Portfolio Diversification as a Motive for International Asset Trade. The Menu of International

2018 Pearson Education, Inc. Chapter 21 Optimum Currency Areas and the Euro Chapter Organization How the European Single Currency Evolved. What Has Driven European Monetary Cooperation? Box: Brexit. The European Monetary System, 19791998. Germany Monetary Dominance and the Credibility Theory of the EMS.

2018 Pearson Education, Inc. Chapter 22 Developing Countries: Growth, Crisis, and Reform Chapter Organization Income, Wealth, and Growth in the World Economy. The Gap between Rich and Poor. Has the World Income Gap Narrowed Over Time? The Importance of Developing Countries for Global Growth. Structural

2018 Pearson Education, Inc. Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model Chapter Organization The Concept of Comparative Advantage. A One-Factor Economy. Relative Prices and Supply. Trade in a One-Factor World. Determining the Relative Price after Trade. Box: Comparative Advantage in Practice:

2018Pearson Education, Inc. 2018Pearson Education, Inc. 2018Pearson Education, Inc. Chapter 4 Specific Factors and Income Distribution Chapter Organization The Specific Factors Model. Box: What Is a Specific Factor? Assumptions of the Model. Production Possibilities. Prices, Wages, and Labor Allocation. Relative

2018 Pearson Education, Inc. 2018 Pearson Education, Inc. 2018 Pearson Education, Inc. Chapter 5 Resources and Trade: The Heckscher-Ohlin Model Chapter Organization Model of a Two-Factor Economy. Prices and Production. Choosing the Mix of Inputs. Factor Prices and Goods Prices. Resources

2018 Pearson Education, Inc. 2018 Pearson Education, Inc. 2018 Pearson Education, Inc. Chapter 6 The Standard Trade Model Chapter Organization A Standard Model of a Trading Economy. Production Possibilities and Relative Supply. Relative Prices and Demand. The Welfare Effect of Changes in

2018 Pearson Education, Inc. 2018 Pearson Education, Inc. 2018 Pearson Education, Inc. Chapter 7 External Economies of Scale and the International Location of Production Chapter Organization Economies of Scale and International Trade: An Overview. Economies of Scale and Market Structure. The Theory of External Economies.

2018 Pearson Education, Inc. 2018 Pearson Education, Inc. 2018 Pearson Education, Inc. Chapter 8 Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises Chapter Organization The Theory of Imperfect Competition. Monopoly: A Brief Review. Monopolistic Competition. Monopolistic Competition and Trade.

2018 Pearson Education, Inc. 2018 Pearson Education, Inc. 2018 Pearson Education, Inc. Chapter 9 The Instruments of Trade Policy Chapter Organization Basic Tariff Analysis. Supply, Demand, and Trade in a Single Industry. Effects of a Tariff. Measuring the Amount of Protection. Costs

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 1 Introduction 1.1 What Is International Economics About? 1.1 What Is International Economics About? 1.1 What Is International Economics

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 10 The Political Economy of Trade Policy 10.1 The Case for Free Trade 10.1 The Case for Free Trade

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 11 Trade Policy in Developing Countries 11.1 Import-Substituting Industrialization 1) The infant industry argument was an important theoretical basis for

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 12 Controversies in Trade Policy 12.1 Sophisticated Arguments for Activist Trade Policy 12.1 Sophisticated Arguments for Activist Trade Policy

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 13 National Income Accounting and the Balance of Payments 13.1 The National Income Accounts 13.1 The National Income Accounts

12 Copyright 2018 Pearson Education, Inc. 12 Copyright 2018 Pearson Education, Inc. 12 Copyright 2018 Pearson Education, Inc. 27) What is the national income identity for a closed economy? Answer: Y = C + I + G Page Ref: 327 Difficulty: Easy Answer: Y = C + I + G

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 14 Exchange Rates and the Foreign Exchange Market: An Asset Approach 14.1 Exchange Rates and International Transactions 14.1 Exchange Rates

18 Copyright 2018 Pearson Education, Inc. 18 Copyright 2018 Pearson Education, Inc. 18 Copyright 2018 Pearson Education, Inc. 12) For the following 15 cases, compare the dollar rates of return on dollar and euro deposits. Answer: Page Ref: 366-367 Difficulty: Moderate Answer: Page Ref: 366-367 Difficulty: Moderate Answer:

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 15 Money, Interest Rates, and Exchange Rates 15.1 Money Defined: A Brief Review 15.1 Money Defined: A Brief Review

14 Copyright 2018 Pearson Education, Inc. 14 Copyright 2018 Pearson Education, Inc. 14 Copyright 2018 Pearson Education, Inc. 15.6 Money, the Price Level, and the Exchange Rate in the Long Run 1) An economy's long-run equilibrium is A) the equilibrium that would occur if prices were perfectly flexible. B)

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 16 Price Levels and the Exchange Rate in the Long Run 16.1 The Law of One Price Chapter 16 Price Levels and

16 Copyright 2018 Pearson Education, Inc. 16 Copyright 2018 Pearson Education, Inc. 16 Copyright 2018 Pearson Education, Inc. The rise in the interest rate from to creates a momentary excess supply of real U.S. money balances at the prevailing price level . However, since under this. Monetary Approach, prices are

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 17 Output and the Exchange Rate in the Short Run 17.1 Determinants of Aggregate Demand in an Open Economy 17.1

18 Copyright 2018 Pearson Education, Inc. 18 Copyright 2018 Pearson Education, Inc. 18 Copyright 2018 Pearson Education, Inc. 2) Which of the following have to be in equilibrium for the economy to be in equilibrium? A) the money market only B) the goods market only C) the output and asset

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 18 Fixed Exchange Rates and Foreign Exchange Intervention 18.1 Why Study Fixed Exchange Rates? 18.1 Why Study Fixed Exchange Rates?

17 Copyright 2018 Pearson Education, Inc. 17 Copyright 2018 Pearson Education, Inc. 17 Copyright 2018 Pearson Education, Inc. 22) Please use a figure to discuss whether or not a devaluation under a fixed exchange rate has the same long-run effect as a proportional increase in the money supply under a

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 19 International Monetary Systems: An Historical Overview 19.1 Macroeconomic Policy Goals in an Open Economy 19.1 Macroeconomic Policy Goals in

21 Copyright 2018 Pearson Education, Inc. 21 Copyright 2018 Pearson Education, Inc. 21 Copyright 2018 Pearson Education, Inc. 9) An expenditure-changing policy A) alters the direction of the economy's total demand for goods and services. B) alters the level of the economy's total demand for goods and services. C) has

35 Copyright 2018 Pearson Education, Inc. 35 Copyright 2018 Pearson Education, Inc. 35 Copyright 2018 Pearson Education, Inc. 23) The DD schedule shows A) interest rate and output pairs for which aggregate demand equals aggregate output. B) exchange rate and output pairs for which aggregate demand equals aggregate output. C)

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 2 World Trade: An Overview 2.1 Who Trades with Whom? 2.1 Who Trades with Whom? 2.1 Who Trades with

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 20 Financial Globalization: Opportunity and Crisis 20.1 The International Capital Market and the Gains from Trade Chapter 20 Financial Globalization: Opportunity and

20 Copyright 2018 Pearson Education, Inc. 20 Copyright 2018 Pearson Education, Inc. 20 Copyright 2018 Pearson Education, Inc. 7) Banks in the U.S. A) cannot hold common stocks. B) can hold common stocks. C) cannot hold common stocks of companies they do business with. D) cannot hold common stocks of

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 21 Optimum Currency Areas and the Euro 21.1 How the European Single Currency Evolved 21.1 How the European Single Currency

16 Copyright 2018 Pearson Education, Inc. 16 Copyright 2018 Pearson Education, Inc. 16 Copyright 2018 Pearson Education, Inc. 16) Which one of the following statements is TRUE for Norway, a non-euro country? A) Of course, owners of capital that cannot be moved cannot avoid more of the economic stability loss

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 22 Developing Countries: Growth, Crisis, and Reform 22.1 Income, Wealth, and Growth in the World Economy Chapter 22 Developing Countries: Growth, Crisis,

17 Copyright 2018 Pearson Education, Inc. 17 Copyright 2018 Pearson Education, Inc. 17 Copyright 2018 Pearson Education, Inc. 4) Brazil's 1999 crisis was relatively short lived because A) Brazil's financial institutions had avoided borrowing all together. B) Brazil's financial institutions had avoided heavy borrowing in local currency. C) Brazil's financial

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 3 Labor Productivity and Comparative Advantage: The Ricardian Model 3.1 The Concept of Comparative Advantage 3.1 The Concept of Comparative

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 4 Specific Factors and Income Distribution 4.1 The Specific Factors Model 4.1 The Specific Factors Model 4.1 The Specific

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 5 Resources and Trade: The Heckscher-Ohlin Model 5.1 Model of a Two-Factor Economy 5.1 Model of a Two-Factor Economy

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 6 The Standard Trade Model 6.1 A Standard Model of a Trading Economy 6.1 A Standard Model of a Trading

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 7 External Economies of Scale and the International Location of Production 7.1 Economies of Scale and International Trade: An Overview Chapter 7

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 8 Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises 8.1 The Theory of Imperfect Competition Chapter 8 Firms in

1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. 1 Copyright 2018 Pearson Education, Inc. International Economics: Theory and Policy, 11e (Krugman et al.) Chapter 9 The Instruments of Trade Policy 9.1 Basic Tariff Analysis 9.1 Basic Tariff Analysis 9.1 Basic Tariff Analysis