Husted and Melvin's International Economics provides a compact, accessible treatment of international economics that includes the most recent policy controversies in an issues-oriented analytical framework. Intuition and application of theory is stressed consistently, rather than memorization of competing theories and technical analysis.
- Coverage emphasizes data, matching models to the real world.
- Flexible enough to be used for either a one-term survey of international economics or two separate terms devoted to a more comprehensive study of international trade and international finance.
- Presentation of theory in an intuitive, applied manner.
- Accessible to students who have had only one or two course in the principles of economics.
- Emphasis on business applications of international trade and finance theories.
New To This Edition
- Chapter 7 talks about how intellectual property protection makes it difficult for the dissemination of medicines to poor countries and provides some suggestions as to how to deal with this problem.
- Chapter 8 includes a new section on the Doha Round of trade talks that are currently underway. It also presents a new Trade Policy Case Study on the steel tariffs imposed by President Bush.
- Chapter 11 now includes a discussion of how bank mergers and the advent of the euro have contributed to a decrease in foreign exchange trading volume.
- Chapter 12 has added a new discussion of the role of private savings as a factor contributing to the U.S. current account deficit.
- Chapter 13 has been streamlined by reducing the sections on futures and options to give a more efficient presentation with less overwhelming data.
- Chapter 14 now contains a new section on real exchange rates.
- New to Chapter 16 is a discussion on early warning indicators of financial crises.
- Chapter 17 contains two substantive changes. First, there is a presentation of how the effect of devaluations may depend on what happens to labor costs relative to the cost of capital. Second, the monetary approach to the exchange rate material has been deleted from this chapter and moved to Chapter 18 so that all exchange rate models are discussed in one place.
- Chapter 19 now offers a section on the euro and the European Central Bank and also uses the case of Argentina as an example of how a currency board can fail.
- Chapter 20 incorporates several substantive changes, including a new Item 20.1 on LIBOR: how it is set and what banks contribute to the published rate each day, a substantially expanded Item 20.2 on the discussion of Islamic Banking, and a new section on the role of corruption and its effects on economic growth.
- Chapter 21 now has a section on the "New Open-Economy Macroeconomics."
- Updated Internet Web Site exercises.