Cover -- International Economics -- Copyright -- Contents -- Preface to the First Edition -- Preface to the Revised Edition -- Preface to the Fourth Edition -- Acknowledgements -- 1 Introduction - Why, What and How -- 1.1 WHY INTERNATIONAL ECONOMICS? -- 1.2 ISSUES IN INTERNATIONAL ECONOMICS -- 1.3 ON STUDYING INTERNATIONAL ECONOMICS -- Positive and normative economics -- Theory and refutation -- Statistical testing -- Conclusion on method -- Some terminology -- 1.4 ABOUT THIS BOOK -- The approach -- The plan -- FURTHER READING -- NOTE -- Part I -- 2 Comparative Costs and International Trade -- 2.1 SOME TOOLS OF ANALYSIS -- Consumption -- Production -- Equlibrium -- 2.2 ABSOLUTE AND COMPARATIVE COSTS -- Absolute advantage -- Comparative advantage -- The gains from trade -- 2.3 SPECIALISATION AND THE TERMS OF TRADE -- The building blocks -- The terms of trade -- Specialisation -- Money and prices -- 2.4 FURTHER ANALYSIS OF THE RICARDIAN MODEL -- The assumptions -- Opportunity costs -- Demand -- Many goods and countries -- Trade impediments -- 2.5 TESTING RICARDIAN THEORY -- FURTHER READING -- KEY CONCEPTS -- QUESTIONS FOR REVIEW -- NOTES -- 3 International Trade and Factor Endowments: (A) The Heckscher-Ohlin Theory -- 3.1 INTERNATIONAL TRADE WITH INCREASING COSTS -- Increasing costs -- Interanational equilibrium -- 3.2 THE HECKSCHER-OHLIN THEORY -- The assumptions -- Commodity and factor prices -- International trade -- Further notes on Heckscher-Ohlin -- Multi-dimensional Heckscher-Ohlin -- 3.3 THREE COROLLARIES OF HECKSCHER-OHLIN -- Factor price equalisation -- Specialisation and factor-intensity reversals -- Generalisations -- The Rybczynski theorem -- The Stolper-Samuelson theorem -- FURTHR READING -- KEY CONCEPTS -- QUESTIONS FOR REVIEW -- APPENDIX: THE SHAPE OF THE TRANSFORMATION CURVE -- NOTE.

4 Internationl Trade and Factor Endowments: (B) Specific Factors and Empirical Tests -- 4.1 HECKSCHER-OHLIN IN THE LONG AND SHORT RUNS -- The very long run -- The short run -- 4.2 TESTING THE HECKSCHER-OHLIN THEOREM -- The Leontief paradox -- Responses to Leontief -- Extending Heckscher-Ohlin -- Commodity results -- Uk trade -- Testing the corollaries -- FURTHER READING -- KEY CONCEPTS -- QUESTIONS FOR REVIEW -- 5 Modern Trade Theory -- 5.1 TECHNOLOGY THEORIES OF INTERNATIONL TRADE -- The imitation gap -- Economic dynamism -- The product cycle -- Testing the tochnology theories -- R&D as a factor of production -- Summary -- 5.2 ECOMOMIED OF SCALE AND IMPERFECT COMPETITION -- External ecomomies of scale -- Monopoly -- Reciprocal dumping -- 5.3 PRODUCT DIFFERENTIATION AND INTRA-INDUSTRY TRADE -- Intra-industry trade -- Aggregation -- Homogeneous goods -- Differentiated goods -- Monopolistic competition (a) Krugman -- Monopolistic competition (b) Lancaster -- Other factors -- Empirical evidence on intra-industry trade -- FURTHER READING -- KEY CONCEPTS -- QUESTIONS FOR REVIEW -- NOTE -- 6 Trade Theory: An Overview -- 6.1 PATTERNS OF INTERNATIONAL TRADE -- The growth of world trade -- The NICs and the NECs -- The direction of trade -- Services -- 6.2 CAN TRADE THEORY EXPLAIN TRADE PATTERNS? -- Explaining trade in goods -- Services again -- The persistence of Heckscher-Ohlin -- FURTHER READING -- KEY CONCEPTS -- QUESTIONS FOR REVIEW -- NOTE -- 7 International Trade and Welfare -- 7.1 THE CASE FOR FREE TRADE -- Production -- Consumpton -- Pareto efficiency -- Uncertainty -- 7.2 COMMUNITY INDIFFERENCE AND SOCIAL WELFARE -- Identical preferences -- Differing preferences -- The social welfare function -- Revealed preference -- 7.3 SECOND BEST -- FURTHER READING -- KEY CONCEPTS -- QUESTIONS FOR REVIEW -- NOTE -- 8 Methods of Protection: (A) Tariffs.

8.1 TARIFFS - A SIMPLE ANALYSIS -- A single good -- Welfare analysis -- The small country -- Measuring the welfare effects -- General equilibrium -- 8.2 TAXES AND SUBSIDIES -- 8.3 EFFECTIVE PROTECTION -- A definition -- Measurement -- Some refinements -- 8.4 TARIFFS AND IMPERFECT COMPETITION -- 8.5 TARIFES IN FACT -- Measurement -- History -- British tariffs -- The effects of tariffs -- FURTHER READING -- KEY CONCEPTS -- QUESTIONS FOR REVIEW -- APPENDIX: EFFECTIVE PROTECTION - AN EXAMPLE -- 9 Methods of Protection: (B) Non-Tariff Barriers -- 9.1 QUANTITATIVE RESTRICTIONS -- The effects of a quota -- The equivaience of tariffs and quotes -- Distributing quotas -- Voluntary export restraint -- 9.2 OTHER NON-TARIFF BARRIERS -- A definition -- The level of NTBs -- 9.3 THE EFFECTS OF NTBs -- Measurement -- The costs of QRs -- Upgrading -- Variable import levies -- CASE-STUDY 9.2: TEXTILES AND CLOTHING -- FURTHER READING -- KEY CONCEPTS -- QUESTIONS FOR REVIEW -- NOTES -- 10 Static Arguments for Protection -- 10.1 DOMESTIC DISTORTIONS -- Conditions for optimality -- Distortions -- Production -- Consumption -- Factor market distortions -- Conclusion -- 10.2 THE OPTIMUM TARIFF -- A general analysis -- A partial equilibrium illustration -- General equilibrium -- Export taxes -- Retaliation -- Applications -- 10.3 THE REVENUE TARIFF -- 10.4 FULL EMPLOYMENT ARGUMENTS -- The basic argument -- Keynes and the tariff -- Cambridge and the tariff -- Liberalisation and employment -- The balance of payments tariff -- FURTHER READING -- KEY CONCEPTS -- QUESTIONS FOR REVIEW -- 11 Dynamic and Strategic Arguments for Protection -- 11.1 DUMPING -- The economics of dumping -- Ec anti-dumping law -- 11.2 INFANT INDUSTRY PROTECTION -- The basic argument -- Private market failure -- Externalities -- Practical difficulities -- Conclusion.

The senescent industry -- 11.3 UNCERTAINTY -- 11.4 STRATEGIC TRADE POLICY -- Export subsidies -- Import protection as export promotion -- Entry and exit -- Strategic trade policy: a critique -- The empirical implementation -- FURTHER READING -- KEY CONCEPTS -- QUESTIONS FOR REVIEW -- APPENDIX -- NOTES -- 12 The Political Economy of Protection -- 12.1 DIRECTLY UNPRODUCTIVE PROFIT-SEEKING ACTIVITY -- Revenue seeking -- Teriff seeking -- 12.2 TARIFF SETTING IN INDUSTRIAL COUNTRIES -- Costs and benefits -- Voting for protection -- Politicians -- Bureaucrats -- Interest groups -- Emperical evidence -- Administered protection -- 12.3 THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) -- The origins of the GATT -- GATT negotiations -- The Uruguay Round -- The political ecomomy of the GATT -- 12.4 DEVELOPING COUNTRIES AND THE GATT -- The Generalised System of Preferences -- FURTHER READING -- KEY CONCEPTS -- QUESTIONS FOR REVIEW -- NOTES -- 13 Customs Unoins -- Degrees of integration -- 13.1 TRADE CREATION AND TRADE DIVERSION -- Second best -- Trade creation and trade diversion -- Desirable unions -- The rest of the world -- 13.2 THE MOTIVES FOR CUSTOMS UNIONS -- Transport costs -- The terms of trade -- Infant industry considerations -- Economies of scale -- Dynamic effects -- Political factors -- FURTHER READING -- KEY CONCEPTS -- QUESTIONS FOR REVIEW -- NOTE -- 14 The European Communities -- 14.1 ECONOMIC INTEGRATION IN WESTERN EUROPE -- The European Coal and Steel Community -- The European Economic Community -- Britain and European integration -- The Community today -- The associated states -- The main institutions -- 14.2 THE EVIDENCE ON CUSTOMS UNIONS -- Integration and international trade -- 'The Six' and EFTA -- UK accession to the EC -- 14.3 COMPLETING THE EUROPEAN INTERNAL MARKET -- Internal barriers -- The costs of non-Europe -- Extending ceochini.

'1992' and international trade -- FURTHER READING -- KEY CONCEPTS -- QUESTIONS FOR REVIEW -- NOTES -- 15 International Trade and Economic Growth -- 15.1 THE RYBCZYNSKI THEOREM -- The Heckscher-Ohlin case -- The specific factors case -- Long-run growth -- Technical progress -- 15.2 IMMISERISING GROWTH -- Growth and trade -- The terms of trade -- Growth and domestic distortions -- 15.3 THE TRANSFER PROBLEM -- The terms of trade -- Immiserising transfers? -- 15.4 EXPORTS AND GROWTH -- Export-led growth -- Empirical results -- 15.5 TRADE AND DEVELOPMENT -- Commodity price trends -- The terms of trade -- Commodity price fluctuations -- Trade as the engine of growth -- The case for industrialisation -- Import substitution vs. export promotion -- Experiences with IS and EP -- FURTHER READING -- KEY CONCEPTS -- QUESTIONS FOR REVIEW -- NOTES -- 16 Capital Movements and the Multinationals -- 16.1 INTRODUCTION -- Factor prices and factor mobility -- Factor price differences -- Portfolio vs. direct investment -- Some history -- MINEs today -- 16.2 THE CAUSES OF FOREIGN DIRECT INVESTMENT -- The eclectic theory of FDI -- Ownership advantages -- Internalisation advantages -- Locational advantages -- Empirical evidence -- Conclusion -- 16.3 MULTINATIONALS AND WELFARE -- Pure capital flows -- Resource transfer effects -- Balance of payments effects -- Sovereignty -- Conclusion -- The capital exporter -- 16.4 MULTINATIONALS AND INTERNATIONAL TRADE THEORY -- FURTHER READING -- KEY CONCEPTS -- QUESTIONS FOR REVIEW -- Part II -- 17 The Balance of Payments -- 17.1 BALANCE OF PAYMENTS CONCEPTS -- The principles -- Balance of payments disequilibrium -- The UK balance of payments accounts -- 17.2 UK FOREIGN TRANSACTIONS -- Visible trade -- Invisible trade -- Invisible earnings -- Investment transactions -- Foreign assets and liabilities.

17.3 THE FOREIGN EXCHANGE RATE.