International Economics Book

Chapter 2	Patterns of Trade and the Gains From Trade: Insights From the Classical Theory	1
	Important Points	1
	Appendix	9
	Chapter Objectives	10
	Glossary Terms	10
	Study Questions	11
	Multiple Choice	11
	True, False, Uncertain, and Why	13
	Short Answer	13
	Answers to Study Questions	14
	Multiple Choice	14
	True, False, Uncertain, and Why	15
	Short Answer	16
Chapter 3	Trade Among Dissimilar Countries: Insights From the Factor-Proportions Theory	19
	Important Points	19
	Appendix	21
	Chapter Objectives	21
	Glossary Terms	23
	Study Questions	23
	Multiple Choice	23
	True, False, Uncertain, and Why	25
	Short Answer	26
	Answers to Study Questions	26
	Multiple Choice	26
	True, False, Uncertain, and Why	27
	Short Answer	28
Chapter 4	Trade Among Dissimilar Countries: Implications of Decreasing Costs and Imperfect Competition	31
	Important Points	31
	Chapter Objectives	34
	Glossary Terms	34
	Study Questions	34
	Multiple Choice	34
	True, False, Uncertain, and Why	36
	Short Answer	37
	Answers to Study Questions	37
	Multiple Choice	37
	True, False, Uncertain, and Why	38
	Short Answer	39
Chapter 5	The Theory of Protection: Tariffs and Other Barriers to Trade	41
	Important Points	41
	Chapter Objectives	45
	Glossary Terms	45
	Study Questions	46
	Multiple Choice	46
	True, False, Uncertain, and Why	48
	Short Answer	48
	Answers to Study Questions	49
	Multiple Choice	49
	True, False, Uncertain, and Why	50
	Short Answer	50
Chapter 6	Arguments for Protection and the Political Economy of Trade Policy	53
	Important Points	53
	Chapter Objectives	57
	Glossary Terms	57
	Study Questions	58
	Multiple Choice	58
	True, False, Uncertain, and Why	60
	Short Answer	60
	Answers to Study Questions	61
	Multiple Choice	61
	True, False, Uncertain, and Why	62
	Short Answer	63
Chapter 7	International Mobility of Labor and Capital	65
	Important Points	65
	Chapter Objectives	67
	Glossary Terms	68
	Study Questions	68
	Multiple Choice	68
	True, False, Uncertain, and Why	70
	Short Answer	71
	Answers to Study Questions	71
	Multiple Choice	71
	True, False, Uncertain, and Why	72
	Short Answer	73
Chapter 8	Regional Trading Blocs: Discriminatory Trade Liberalization	75
	Important Points	75
	Chapter Objectives	77
	Glossary Terms	77
	Study Questions	78
	Multiple Choice	78
	True, False, Uncertain, and Why	80
	Short Answer	80
	Answers to Study Questions	81
	Multiple Choice	81
	True, False, Uncertain, and Why	82
	Short Answer	83
Chapter 9	Commercial Policy: History and Recent Controversies	85
	Important Points	85
	Chapter Objectives	87
	Glossary Terms	88
	Study Questions	88
	Multiple Choice	88
	True, False, Uncertain, and Why	90
	Short Answer	90
	Answers to Study Questions	91
	Multiple Choice	91
	True, False, Uncertain, and Why	92
	Short Answer	92
Chapter 10	Trade and Growth	95
	Important Points	99
	Chapter Objectives	101
	Glossary Terms	102
	Study Questions	102
	Multiple Choice	102
	True, False, Uncertain, and Why	104
	Short Answer	104
	Answers to Study Questions	105
	Multiple Choice	105
	True, False, Uncertain, and Why	106
	Short Answer	107
Chapter 11	Issues in International Public Economics	103
	Important Points	103
	Chapter Objectives	106
	Glossary Terms	106
	Study Questions	106
	Multiple Choice	106
	True, False, Uncertain, and Why	108
	Short Answer	109
	Answers to Study Questions	109
	Multiple Choice	109
	True, False, Uncertain, and Why	110
	Short Answer	110
Chapter 12	Balance of Payments Accounting	113
	Important Points	113
	Appendix	117
	Chapter Objectives	118
	Glossary Terms	119
	Study Questions	119
	Multiple Choice	119
	True, False, Uncertain, and Why	121
	Short Answer	122
	Answers to Study Questions	123
	Multiple Choice	123
	True, False, Uncertain, and Why	124
	Short Answer	125
Chapter 13	Markets for Foreign Exchange	127
	Important Points	127
	Chapter Objectives	131
	Glossary Terms	131
	Study Questions	132
	Multiple Choice	132
	True, False, Uncertain, and Why	134
	Short Answer	135
	Answers to Study Questions	136
	Multiple Choice	136
	True, False, Uncertain, and Why	137
	Short Answer	137
Chapter 14	International Derivatives: Foreign Exchange Forwards, Futures, and Options	139
	Important Points	139
	Chapter Objectives	142
	Glossary Terms	142
	Study Questions	142
	Multiple Choice	142
	True, False, Uncertain, and Why	145
	Short Answer	145
	Answers to Study Questions	146
	Multiple Choice	146
	True, False, Uncertain, and Why	147
	Short Answer	148
Chapter 15	Alternative Models of the Balance of Payments	149
	Important Points	149
	Chapter Objectives	156
	Glossary Terms	156
	Study Questions	156
	Multiple Choice	156
	True, False, Uncertain, and Why	158
	Short Answer	159
	Answers to Study Questions	160
	Multiple Choice	160
	True, False, Uncertain, and Why	161
	Short Answer	162
Chapter 16	Payments Adjustment with Fixed Exchange Rates	165
	Important Points	165
	Chapter Objectives	173
	Glossary Terms	173
	Study Questions	174
	Multiple Choice	174
	True, False, Uncertain, and Why	176
	Short Answer	176
	Answers to Study Questions	177
	Multiple Choice	177
	True, False, Uncertain, and Why	178
	Short Answer	178
Chapter 17	Balance of Payments Adjustment Through Exchange Rates Changes	181
	Important Points	181
	Chapter Objectives	185
	Glossary Terms	185
	Study Questions	186
	Multiple Choice	186
	True, False, Uncertain, and Why	187
	Short Answer	188
	Answers to Study Questions	188
	Multiple Choice	188
	True, False, Uncertain, and Why	189
	Short Answer	190
Chapter 18	Open Economy Macroeconomics with Fixed Exchange Rates	191
	Important Points	191
	Chapter Objectives	200
	Glossary Terms	200
	Study Questions	200
	Multiple Choice	200
	True, False, Uncertain, and Why	202
	Short Answer	203
	Answers to Study Questions	203
	Multiple Choice	203
	True, False, Uncertain, and Why	204
	Short Answer	205
Chapter 19	The Theory of Flexible Exchange Rates	209
	Important Points	209
	Chapter Objectives	215
	Study Questions	216
	Multiple Choice	216
	True, False, Uncertain, and Why	218
	Short Answer	218
	Answers to Study Questions	219
	Multiple Choice	219
	True, False, Uncertain, and Why	220
	Short Answer	220
Chapter 20	The International Monetary System From 1880 to 1973	225
	Important Points	225
	Chapter Objectives	228
	Study Questions	228
	Multiple Choice	228
	True, False, Uncertain, and Why	230
	Short Answer	231
	Answers to Study Questions	231
	Multiple Choice	231
	True, False, Uncertain, and Why	232
	Short Answer	233
Chapter 21	International Monetary Relations From 1973 to the Present	235
	Important Points	235
	Chapter Objectives	238
	Glossary Terms	239
	Study Questions	239
	Multiple Choice	239
	True, False, Uncertain, and Why	240
	Short Answer	241
	Answers to Study Questions	241
	Multiple Choice	241
	True, False, Uncertain, and Why	242
	Short Answer	243