International Economics, 13/e (AE-Paperback)

Chapter 1 has been thoroughly revised and updated to reflect the dramatic economic and financial changes that have taken place in the world economy since the last edition of this text. Section 1.6 has been thoroughly revised to identify the major international economic (trade and financial) problems facing the United States and the world today and so has the discussion in Chapter 21 (Section 21.6), which examines how they can be resolved.

The rapid globalization of the world economy is providing maj6r benefits to most countries, but it is also presenting many challenges to poor countries that are unable to take advantage of globalization, as well as to the United States and other advanced countries, which face increasing competition from some emerging markets, especially China. These topics are discussed in several new sections and case studies in the trade and finance part of the text.

The dollar-euro and dollar-RMB exchange rates are much in the news these days as are the huge and unsustainable trade deficits of the United States. The relationship between U.S. trade deficits, trade protectionism, and misaligned exchange rates is examined, both theoretically and empirically, and in all of its ramifications, in several trade and finance sections and case studies in this new edition of the text. 

Besides its effect on international trade and international competitiveness, the continuing globalization of the world economy and liberalization of international capital markets have further eroded governments' control over national economic and financial matters. Exchange rates exhibit great volatility and large misalignments, which interfere with the flow of international trade and investments and the comparative advantage of nations. At the same time, international macroeconomic policy coordination has not progressed sufficiently to deal adequately with the potential problems and challenges that increased inter dependence in world financial markets created.

The 13th edition of the text also presents an in-depth analysis of the dangerous structural imbalances in the world economy and provides an evolution of the policy options available to deal with them. The major imbalances in the world economy today are the huge trade and budget (twin) deficits of the United States, the slow growth and high unemployment in Europe, the decade-long stagnation in Japan, the serious competitive challenge for both advanced and developing countries provided by the competition from China, the danger of financial and economic crises in .advanced and emerging market economies, world poverty, resource scarcity, and environmental degradation. All of these topics are addressed in this edition of the text.

There are 127 case studies in the text. Many are new and the others have been thoroughly revised.