Global Markets and Competition
This text presents the basics of international
economics integrating microeconomics, macroeconomics, and finance. Graphs, numerical examples, and exercises
make the theory accessible. Over 250
boxed examples make the theory relevant.
Emphasis is on the benefits of open international competition. Adopted worldwide, and at Auburn University,
Georgia College and State University, Hartford University, Ohio State
University, Pepperdine University, University of Houston, and others.
international economics web
page 
Global Markets and Competition
International economics describes and predicts production, trade,
and investment across countries. Wages and income rise and fall with
international commerce even in the large rich developed
Economics as a social science began in
Theory is presented using graphs and numerical examples. Numerous problems lead to a thorough
understanding. Over 250 examples
illustrate the theory. The text
integrates issues of microeconomic trade, economic policy, and international
finance and macroeconomics. Emphasis is
on the powerful forces of international markets and the ultimate limitations of
government stopgap policy.
Global Markets and Competition
This text prepares you to anticipate how international economics
will influence your business and personal life.
Countries have become more integrated through increased international
trade, foreign investment, migration, and more efficient transportation and
telecommunication. The foreign exchange
market is the largest market in the world.
Industries prosper and fail in the face of global competition. International agreements such as the World
Trade Organization (WTO), North American Free Trade Area (NAFTA), and European
Union (EU) are becoming a fundamental form of government.
Government policy protects some favored industries from the
pressures of international competition and subsidizes others for export, at the
expense of everyone in the economy. Tax
policies are designed to hinder trade and investment. Government central banks
interfere with the foreign exchange market.
Such policy maneuvers impede international commerce and lower average
income in the economy.
This text focuses on the foundations of international economics
in the system of international markets.
In microeconomics, an economy is a collection of interdependent
markets. In international economics,
markets and economies are linked across borders. International economics is based on the
supply and demand for goods and services across countries.
Comparative advantage is the basic tool for predicting the
international pattern of production. The international supply of traded
products is based on underlying production.
The production and trade of minerals and agricultural goods are based on
geographical advantages. For traded
manufactured goods and services, capital is an important input that can be
installed where there is labor and infrastructure.
Trade occurs due to the arbitrage of products from countries
where prices are low to places where prices are high. Through arbitrage,
traders make profit and products are more economically distributed. International demand is based on income and
tastes. The interaction of international
supply and demand determines production and trade.
The effects of trade depend partly on the types of industries
involved, from competition to monopoly. Trade policies are designed to
redistribute income toward some favored industry or group, altering the
efficient pattern of production and distribution. The costs of protection outweigh the
benefits, but industry and labor groups lobby for protective tariffs and quotas
because they stand to gain while others pay.
Politicians respond to lobby payoffs as well as political pressure.
International economics builds models to capture the essence of
international commerce. The fundamental
scientific models of international economics have stood the test of time. Models are tested and refined as more is
learned about how the international economy works.
The graphs, examples, applications, and problems in this text
are essential for learning. There are
hints for even numbered problems in the back of the book. You will enjoy International Economics: Global Markets and Competition.
Themes of International
Economics: Global Markets and Competition are:
- excess supply & demand
- constant cost production &
trade
- neoclassical trade
- protectionism versus free trade
- specific factors & factor
proportions models
- industrial organization &
trade
- migration & investment
- foreign exchange markets
- balance of payments theory
- international roles of monetary
and fiscal policy
- open economy ISLMBP
The text is unique in several ways.
- It is a one term text covering
international trade, investment, and monetary economics
- It is designed for students with
only a principles background
- Microeconomic models stress
positive theory
- Micro theory advances through
partial equilibrium, general equilibrium, industrial organization
- Foreign exchange and the balance
of payments integrated throughout
- Over 250 boxed examples
illustrate theory
- Problems carefully lead students
through the theory
- Open economy macroeconomic
ISLMBP model
- The text advocates free trade
and is skeptical about active trade policy
The text is appropriate for "service" courses for
non-majors. Numerous boxed examples make
the text suitable for MBA students.
Technical points are made with numerical examples and graphs, avoiding "formulas"
and algebraic symbols. Classroom
presentations should use diagrams and algebra.
The problems after each section and chapter are designed for learning
and are classroom tested. Hints for even
numbered problems are in an appendix.
Students can be called on to answer or work problems at the board to get
them involved.
You will be surprised at how well your students learn using International Economics: Global Markets and
Competition.
1. International Markets
A. International markets and prices
B. Excess supply and demand
C. The balance of trade
D. Comparative advantage and specialization
2. Trade with Constant Costs
A. Constant opportunity cost of production
B. Specialization and gains from trade
C. Extensions of constant cost trade theory
D. Applications of constant cost trade theory
II. TRADE, PROTECTION, AND THE TERMS OF TRADE
3. The Gains from Trade
A. The production possibilities frontier and real income
B. Specialization with increasing costs
C. Economic development and trade
D. Industrial trade policy
4. Protectionism
A. Tariffs: Taxes on imports
B. Quotas and other nontariff barriers
C. Protection and production
D. Political economy of protection
5. Terms of Trade
A. Offer curves
B. Tariffs and the terms of trade
C. Tariff games
D. Nonrenewable resources
III. PRODUCTION & TRADE
6. Production and Factor Proportions
A. Specific factors of production
B. Production with two factors and two goods
C. Four theorems of production and trade
D. Applying factor proportions trade theory
7. Industrial Organization and Trade
A. Price searching firms
B. Intraindustry trade
C. Oligopolies
D. Other trade models
IV. INTERNATIONAL FACTORS & ECONOMIC
INTEGRATION
8. International Labor & Capital
A. International migration
B. International investment
C. Migration, foreign investment, and income redistribution
D. Migration, foreign investment, and trade
9. International Economic Integration
A. Multinational firms
B. International externalities
C. International political economy
D. Steps of economic integration
V.
INTERNATIONAL MONEY, FINANCE, AND MACROECONOMICS
10. Balance of Payments
A. Price elasticities and the trade balance
B. Current and capital accounts
C. Deficits and surpluses
D. International fiscal and monetary policy
11. Foreign Exchange Markets
A. Foreign exchange rates
B. Managed exchange rates
C. Foreign exchange trading
D. Foreign exchange risk
12. International Financial Markets
A. International markets
for loans
B. Foreign exchange and
finance
C. International money
D. Money and
international finance
13. Open Economy Macroeconomics
A. The micro foundations
of macroeconomics
B. Closed economy
macroeconomics
C. The open macroeconomy
D. Inflation, exchange
rates, and open economy macro policy