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Questions and Answers
Which of the following concepts relates to the classification of international financial transactions?
Which of the following concepts relates to the classification of international financial transactions?
What principle is essential for maintaining accuracy in balance-of-payments accounting?
What principle is essential for maintaining accuracy in balance-of-payments accounting?
Which case study focuses on the analysis of the U.S. trade deficit with a specific country?
Which case study focuses on the analysis of the U.S. trade deficit with a specific country?
What is a primary concern of multinational corporations (MNCs) operating in host countries?
What is a primary concern of multinational corporations (MNCs) operating in host countries?
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Why might international labor migration be pursued by individuals?
Why might international labor migration be pursued by individuals?
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What is one major economic issue that advanced economies are facing after the 'Great Recession'?
What is one major economic issue that advanced economies are facing after the 'Great Recession'?
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What is one potential consequence of rising protectionism in advanced economies?
What is one potential consequence of rising protectionism in advanced economies?
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Excessive volatility in exchange rates can lead to what kind of crises?
Excessive volatility in exchange rates can lead to what kind of crises?
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Which factor is contributing to deep structural imbalances in the United States?
Which factor is contributing to deep structural imbalances in the United States?
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Which issue poses serious problems due to deep poverty in many developing countries?
Which issue poses serious problems due to deep poverty in many developing countries?
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What environmental issue jeopardizes growth in advanced economies?
What environmental issue jeopardizes growth in advanced economies?
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What could the insufficient restructuring in transition economies lead to?
What could the insufficient restructuring in transition economies lead to?
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Which of the following is NOT a significant international economic problem mentioned?
Which of the following is NOT a significant international economic problem mentioned?
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What is one primary focus of Part Two of the book?
What is one primary focus of Part Two of the book?
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Which of the following concepts is related to the Eurozone crisis?
Which of the following concepts is related to the Eurozone crisis?
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Which topic discusses the effects of international trade on growth in developing countries?
Which topic discusses the effects of international trade on growth in developing countries?
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What principle is introduced prior to general equilibrium analysis in the book?
What principle is introduced prior to general equilibrium analysis in the book?
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What key issue is highlighted by the debate over U.S. immigration policy within international economics?
What key issue is highlighted by the debate over U.S. immigration policy within international economics?
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What phenomenon does the Balassa–Samuelson effect primarily address?
What phenomenon does the Balassa–Samuelson effect primarily address?
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What is a significant consequence of the exploding U.S. trade deficit with China?
What is a significant consequence of the exploding U.S. trade deficit with China?
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What does the internationalization of the renminbi (yuan) imply for global finance?
What does the internationalization of the renminbi (yuan) imply for global finance?
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What major theme is explored in Part Four of the discussed content?
What major theme is explored in Part Four of the discussed content?
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Which chapters are likely included in an undergraduate course in international finance?
Which chapters are likely included in an undergraduate course in international finance?
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What benefit does the use of a consistent example across chapters provide to students?
What benefit does the use of a consistent example across chapters provide to students?
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How many case studies are available across the chapters?
How many case studies are available across the chapters?
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In what type of courses might instructors include appendices and readings from the annotated bibliography?
In what type of courses might instructors include appendices and readings from the annotated bibliography?
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What is a notable feature of the graphical models used throughout the chapters?
What is a notable feature of the graphical models used throughout the chapters?
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What feature enhances the readability and understanding of graphs in the chapters?
What feature enhances the readability and understanding of graphs in the chapters?
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What is the purpose of breaking longer sections into numbered subsections?
What is the purpose of breaking longer sections into numbered subsections?
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What concept addresses the relationship between factor endowments and trade patterns?
What concept addresses the relationship between factor endowments and trade patterns?
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Which phenomenon explains the situation where a country exports goods that require more labor but imports goods that require more capital?
Which phenomenon explains the situation where a country exports goods that require more labor but imports goods that require more capital?
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What term is used to describe the paradox where the U.S. exports labor-intensive products despite having a higher capital endowment?
What term is used to describe the paradox where the U.S. exports labor-intensive products despite having a higher capital endowment?
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Which of the following is NOT a focus of the Heckscher–Ohlin Model?
Which of the following is NOT a focus of the Heckscher–Ohlin Model?
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What describes economic efficiency that can arise when firms increase production to lower average costs?
What describes economic efficiency that can arise when firms increase production to lower average costs?
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Which model suggests that production factors are not perfectly mobile between industries in the short run?
Which model suggests that production factors are not perfectly mobile between industries in the short run?
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What does the term 'imperfect competition' imply in the context of international trade?
What does the term 'imperfect competition' imply in the context of international trade?
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Which case study addresses the theme of globalization's impact on employment rates?
Which case study addresses the theme of globalization's impact on employment rates?
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What is the primary goal of trade-creating customs unions?
What is the primary goal of trade-creating customs unions?
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What distinguishes a trade-diverting customs union from a trade-creating one?
What distinguishes a trade-diverting customs union from a trade-creating one?
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Which of the following is a benefit of economic integration among countries?
Which of the following is a benefit of economic integration among countries?
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What is the focus of the Doha Round in trade discussions?
What is the focus of the Doha Round in trade discussions?
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Which act initiated formal trade agreements in the United States in 1934?
Which act initiated formal trade agreements in the United States in 1934?
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What role does international trade play in economic development according to trade theories?
What role does international trade play in economic development according to trade theories?
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In what context are international commodity agreements often discussed?
In what context are international commodity agreements often discussed?
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Which of the following is likely a dynamic benefit from customs unions?
Which of the following is likely a dynamic benefit from customs unions?
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Which scenario aligns with the Theory of the Second Best?
Which scenario aligns with the Theory of the Second Best?
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What challenges do developing countries face regarding trade?
What challenges do developing countries face regarding trade?
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What is a key characteristic of multinational corporations?
What is a key characteristic of multinational corporations?
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How do tariffs generally affect international trade?
How do tariffs generally affect international trade?
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What is a central factor in determining the terms of trade?
What is a central factor in determining the terms of trade?
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Study Notes
International Economics Eleventh Edition - Overview
- The eleventh edition of International Economics has been thoroughly updated and expanded, incorporating new significant topics and recent developments.
- Its primary goal is to provide a clear and comprehensive overview of international economics principles, enabling understanding, evaluation, and solution proposals for current and future international economic issues impacting the US and the global community. Key issues include:
Significant International Developments
- Slow growth and high unemployment in developed nations following the Great Recession (the deepest financial crisis since the Great Depression).
- Rising protectionism in the US and other developed countries, hindering specialization and trade and potentially triggering harmful trade wars.
- Excessive volatility and misalignment of exchange rates discouraging international trade and investment, potentially leading to financial crises.
- Deep structural imbalances in the US, slow growth in Europe and Japan, and insufficient restructuring in transitioning economies of Central and Eastern Europe, potentially reducing global trade and potentially destabilizing global currencies (like the dollar and euro).
- Deep poverty and widening global inequalities in many developing countries, posing significant moral, political, and developmental challenges for developed nations.
- Resource scarcity, environmental degradation, and climate change endangering ongoing growth in developed countries and sustainable development in emerging markets, events largely beyond US control.
New Sections & Case Studies in the Eleventh Edition
- International Finance: Focuses on foreign exchange market size, currency distribution, the carry trade, exchange rate forecasting, the US trade deficit with China, the euro-dollar exchange rate, the Balassa-Samuelson effect in transitioning economies, structural imbalances and exchange rate misalignments, the effective exchange rate of the dollar and US current account deficits, exchange rate pass-through to import prices, petroleum prices and growth, inflation targeting and exchange rates, the global financial crisis, slow recovery and growth after the Great Recession, the Eurozone crisis, internationalization of the renminbi, IMF member exchange rate arrangements, and international monetary system reforms.
- Increased International Trade and Finance Data: Integration throughout the text.
Audience and Level
- Intuitive explanations of principles and theories within the text.
- Comprehensive and rigorous explanations in appendices.
- Partial equilibrium analysis before general equilibrium analysis (optional), increasing flexibility for learning.
- Aimed at bridging the gap between overly complex and overly simplistic presentations of international economics in other texts.
Organization of the Book
- Four parts:
- Part One (Chapters 2-7): Trade theory (basis and gains from trade).
- Part Two (Chapters 8-12): Trade policy (obstructions to trade).
- Part Three (Chapters 13-15): Balance of payments, foreign exchange markets, and exchange rate determination.
- Part Four (Chapters 16-21): Open-economy macroeconomics, relationships between domestic economies and global systems, and the workings of the international monetary system.
- Recommended chapters for undergraduate courses (core and optional sections).
- Suitable for international economics courses in business programs.
- Graduate course options include chapters' appendices and annotated bibliographies.
Textbook Features for Students
- Consistent Example Use: Same examples across all relevant chapters related to a particular concept for smoother learning and highlighting connections between topics.
- Graphical & Numerical Modeling: Use of graphs and numerical examples for clear, accessible, and practical understanding.
- Real-world Case Studies: 122 case studies (4-9 per chapter), focused on important chapter topics, and designed to reinforce learning.
- Numbered Sections: Clear structuring for quick reference.
- The text presents all the principles and theories essential for a thorough understanding of international economics.
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Description
Explore the key principles and contemporary issues in international economics as outlined in the eleventh edition of the textbook. This overview addresses critical topics such as slow growth, rising protectionism, exchange rate volatility, and their impacts on global trade. Understand how these elements shape the international economic landscape.
