Chapter Organization Introduction Import-Substituting Industrialization Problems of the Dual Economy Export-Oriented Industrialization: The East Asian Miracle Summary

Chapter Organization Introduction The Case for Free Trade National Welfare Arguments against Free Trade Income Distribution and Trade Policy International Negotiations and Trade Policy Summary Appendix: Proving that the Optimum Tariff is Positive

Chapter Organization Introduction Basic Tariff Analysis Costs and Benefits of a Tariff Other Instruments of Trade Policy The Effects of Trade Policy: A Summary Summary Appendix I: Tariff Analysis in General Equilibrium Appendix II: Tariffs and Import Quotas in the Presence of Monopoly

Chapter organization Introduction International Labor mobility International Borrowing and Lending Direct Foreign Investment and Multinational Firms Summary Appendix: More on Intertemporal Trade

Countries engage in international trade for two basic reasons Countries trade because they differ either in their resources or in technology Countries trade in order to achieve scale economies or increasing returns in production

Introduction A Standard Model of Trading Economy International Transfers of Income: Shifting the RD Curve Tariffs and Export Subsidies: Simultaneous Shifts in RS and RD Summary Appendix: Representing International Equilibrium with Offer Curves

Chapter Organization Introduction A Model of a Two-Factor Economy Effects of International Trade Between Two-Factor Economies Empirical Evidence on the Heckscher-- Model Summary Appendix: Factor Prices, Goods Prices, and Input Choices

Introduction The Specific Factors Model International Trade in the Specific Factors Model Income Distribution and the Gains from Trade The Political Economy of Trade: A Preliminary View Summary Appendix: Further Details on Specific Factors

Chapter organization Introduction The Concept of Comparative Advantage A One-Factor Economy Trade in a One-Factor World Comparative Advantage with Many Goods Adding Transport Costs and Nontraded Goods Summary

Introduction What is International Economics about? International Economics: Trade and Money