The globalized world economy is more important than ever before. This book provides a clear and up-to-date look at the economic foundations of international economics. Through accessible language and attractive presentation with abundant full-colour diagrams and graphs incorporating contemporary trade data, the authors explain the principal concepts in an engaging manner open to students from any discipline. Throughout, economic models are discussed in the context of recent and current international trade issues to ensure students gain a concrete understanding and see how the field impacts the real world. Written for upper undergraduate courses, the book includes feature boxes that marry theory and economics in practice to show models applied, a featured real-world application for every chapter, and over 240 end of chapter questions help students fully engage with and consolidate their learning. Online resources for instructors include a solutions manual, lecture slides and the book figures as jpgs.

Preface; Part I. International Trade: 1. Introducing the global economy; 2. Gains from trade; 3. Exploring the gains from trade; 4. Trade and comparative advantage; 5. Trade and factor endowments; 6. Factor mobility; 7. Product variety; 8. Trade policy; 9. Trade intervention; 10. Trade policy; Part II. International Finance: 11. Measuring the economy and its interaction with the world; 12. Exchange rates, interest rates, and the foreign exchange market; 13. Spending and income in the short run; 14. Income and interest rates under fixed exchange rates; 15. Floating exchange rates and the international trilemma; 16. Income, money and the price level in an open economy; 17. The determinants of the exchange rate; 18. Emerging market crises; 19. The global financial crisis; 20. The Eurozone crisis; References; Index.