International Economics: Theory and Policy
Version 1.0
By Steve Suranovic
Included Supplements
Key Features
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International Economics: Theory and Policy
Steve Suranovic
In writing International Economics: Theory and Policy, Steve Suranovic’s goals were simple:
- Offer students the theory and models to understand how economics works and how economists understand the world
- Provide faculty with a fully developed teaching package to enable that goal
This textbook is suitable for these courses: Full-year trade and finance courses; or a one-semester trade/finance course
This textbook is suitable for 2 and 4 year institutions.
PEDAGOGICAL FEATURES:
- MODEL WALKTHROUGHS:
The text walks students through a detailed description of how models’ assumptions influence their conclusions. Then, students learn how the models connect with the real world.
- INSIGHTFUL QUESTIONS & ANSWERS
This section encourages students to walk through scenarios related to each concept and idea.
- CLEAR, STRAIGHTFORWARD EXPLANATIONS:
Needlessly difficult material is eliminated, while other principles, including the development of the relative supply/demand structure or the presentation of offer curves, are omitted as to not go too deeply into often-confusing topics for students at this level.
- UNIQUE APPROACHES:
Approaches in this text offer a new way to present the Jones’ magnification effects, a systematic method to teach the theory of the second best, and a unique description of valid reasons to worry about trade deficits.
- About the Author
- Acknowledgments
- Preface
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Chapter 1: Introductory Trade Issues: History, Institutions, and Legal Framework
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Chapter 2: The Ricardian Theory of Comparative Advantage
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Chapter 3: The Pure Exchange Model of Trade
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Chapter 4: Factor Mobility and Income Redistribution
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Chapter 5: The Heckscher-Ohlin (Factor Proportions) Model
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Chapter 6: Economies of Scale and International Trade
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Chapter 7: Trade Policy Effects with Perfectly Competitive Markets
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Chapter 8: Domestic Policies and International Trade
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Chapter 9: Trade Policies with Market Imperfections and Distortions
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Chapter 10: Political Economy and International Trade
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Chapter 11: Evaluating the Controversy between Free Trade and Protectionism
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Chapter 12: Introductory Finance Issues: Current Patterns, Past History, and International Institutions
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Chapter 13: National Income and the Balance of Payments Accounts
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Chapter 14: The Whole Truth about Trade Imbalances
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Chapter 15: Foreign Exchange Markets and Rates of Return
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Chapter 16: Interest Rate Parity
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Chapter 17: Purchasing Power Parity
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Chapter 18: Interest Rate Determination
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Chapter 19: National Output Determination
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Chapter 20: The AA-DD Model
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Chapter 21: Policy Effects with Floating Exchange Rates
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Chapter 22: Fixed Exchange Rates
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Chapter 23: Policy Effects with Fixed Exchange Rates
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Chapter 24: Fixed versus Floating Exchange Rates

Instructor’s Manual
The Instructor’s Manual guides you through the main concepts of each chapter and important elements such as learning objectives, key terms, and key takeaways. Can include answers to chapter exercises, group activity suggestions, and discussion questions.

PowerPoint Lecture Notes
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