Salvatore's International Economics provides information about fundamental institutions and relationships that affect quality of life and provides a framework for thinking through and understanding the process of decision making. Furthermore, the text is designed as a primary text for an introduction to basic economics or principles of economics and offers a balanced presentation of macroeconomics and microeconomics.

• Introduction.



Part One: International Trade Theory.

• The Law of Comparative Advantage.

• The Standard Theory of International Trade.

• Demand and Supply, Offer Curves and the Terms of Trade.

• Factor Endowments and the Heckscher-Ohlin Theory.

• Economies of Scale, Imperfect Competition and International Trade.

• Economic Growth and International Trade.



Part Two: International Trade Policy.

• Trade Restrictions: Tariffs.

• Nontariff Trade Barriers and the New Protectionism.

• Economic Integration: Customs Unions and Free Trade Areas.

• International Trade and Economic Development.

• International Resource Movements and Multinational Corporations.



Part Three: Balance of Payments and Exchange Rates.

• Balance of Payments.

• Foreign Exchange Markets and Exchange Rates.

• Exchange Rate Determination.



Part Four: Open-Economy Macroeconomics and the International Monetary System.

• The Price Adjustment Mechanism with Flexible and Fixed Exchange Rates.

• The Income Adjustment Mechanism and Synthesis of Automatic Adjustments.

• Open-Economy Macroeconomics: Adjustment Policies.

• Prices and Output in an Open Economy: Aggregate Demand & Aggregate Supply.

• Flexible versus Fixed Exchange Rates, the European Monetary System and Macroeconomic Policy Coordination.

• The International Monetary System: Past, Present and Future.