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Nobel Prize-winning economist Paul Krugman and renowned researcher Maurice Obstfeld set the standard for international economics courses with the text that remains the market leader in the U.S. and around the world. International Economics: Theory and Policy is a proven approach in which each half of the book leads with an intuitive introduction to theory and follows with self-contained chapters to cover key policy applications. The Eighth Edition integrates the latest research, data and policy in hot topics such as outsourcing, economic geography, trade and environment, financial derivatives, the subprime crisis and Chinas exchange rate policies.

Table of Contents
Chapter 1. Introduction
Part I. International Trade Theory
* Chapter 2. Labor Productivity and Comparative Advantage: The Ricardian Model
* Chapter 3. Resources, Comparative Advantage and Income Distribution
* Chapter 4. The Standard Trade Model
* Chapter 5. Economies of Scale, Imperfect Competition and International Trade
* Chapter 6. International Factor Movements

Part II. International Trade Policy
* Chapter 7. The Instruments of Trade Policy
* Chapter 8. The Political Economy of Trade Policy
* Chapter 9. Trade Policy in Developing Countries

Part III. Exchange Rates and Open-economy Macroeconomics
* Chapter 10. National Income Accounting and the Balance of Payments
* Chapter 11. Exchange Rates and the Foreign Exchange Market: An Asset Approach
* Chapter 12. Money, Interest Rates and Exchange Rates
* Chapter 13. Price Levels and the Exchange Rate in the Long Run
* Chapter 14. Output and the Exchange Rate in the Short Run

* Appendix 1: Inter-temporal Trade and Consumption Demand
* Appendix 2: The Marshall - Lerner Condition and Empirical Estimates of Trade Elasticities
* Chapter 15. Fixed Exchange Rates and Foreign Exchange Intervention
* Appendix 1: Equilibrium in the Foreign Exchange Market with Imperfect Asset Substitutability
* Appendix 2: The Timing of Balance of Payments Crises

Part IV. International Macroeconomic Policy
* Chapter 16. The International Monetary System, 1870 - 1973
* Chapter 17. Macroeconomic Policy and Coordination Under Floating Exchange Rates

* Appendix: International Policy Coordination Failures
* Chapter 18. Optimum Currency Areas and the European Experience
* Chapter 19. The Global Capital Market: Performance and Policy Problems
* Chapter 20. Developing Countries: Growth, Crisis and Reform