1. Introduction; PART ONE: INTERNATIONAL TRADE THEORY; 2. The Law of Comparative Advantage; 3. The Standard Theory of International Trade; 4. Demand and Supply, Offer Curves, and the Terms of Trade; 5. Factor Endowments and the Heckscher-Ohlin Theory; 6. Economies of Scale, Imperfect Competition, and International Trade; 7. Economic Growth and International Trade; PART TWO: INTERNATIONAL TRADE POLICY; 8. Trade Restrictions: Tariffs; 9. Nontariff Trade Barriers and the New Protectionism; 10. Economic Integration: Customs Unions and Free Trade Areas; 11. International Trade and Economic Development; 12. International Resource Movements and Multinational Corporations; PART THREE: THE BALANCE OF PAYMENTS, FOREIGN MARKETS, AND EXCHANGE RATES; 13. Balance of Payments; 14. Foreign Exchange Markets and Exchange Rates; 15. Exchange Rate Determination; PART FOUR: OPEN ECONOMY MACROECONOMICS AND THE INTERNATIONAL MONETARY SYSTEM; 16. The Price Adjustment Mechanism with Flexible and Fixed Exchange Rates; 17. The Income Adjustment Mechanism and Synthesis of Automatic Adjustments; 18. Open-Economy Macroeconomics: Adjustment Policies; 19. Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply; 20. Flexible versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination; 21. The International Monetary System: Past, Present, and Future; Answers to Selected Problems; Glossary of Key Terms; Name Index; Subject Index.