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1 IntroductionPart 1 International Trade Theory2 World Trade: An Overview 3 Labor Productivity and Comparative Advantage: The Ricardian Model 4 Specific Factors and Income Distribution5 Resources and Trade: The Heckscher-Ohlin Model6 The Standard Trade Model7 External Economies of Scale and the International Location of Production 8 Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises Part 2 International Trade Policy 9 The Instruments of Trade Policy 10 The Political Economy of Trade Policy11 Trade Policy in Developing Countries 12 Controversies in Trade PolicyPart 3 Exchange Rates and Open-Economy Macroeconomics 13 National Income Accounting and the Balance of Payments 14 Exchange Rates and the Foreign Exchange Market: An Asset Approach 15 Money, Interest Rates, and Exchange Rates 16 Price Levels and the Exchange Rate in the Long Run 17 Output and the Exchange Rate in the Short Run 18 Fixed Exchange Rates and Foreign Exchange InterventionPart 4 International Macroeconomic Policy19 International Monetary Systems: An Historical Overview 20 Optimum Currency Areas and the European Experience 21 Financial Globalization: Opportunity and Crisis 22 Developing Countries: Growth, Crisis, and Reform