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International Economics PDF

505 Pages·2017·7.575 MB·English
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GLOBAL GLOBAL EDITION EDITION International Economics For these Global Editions, the editorial team at Pearson has I n collaborated with educators across the world to address a t e r SEVENTH EDITION wide range of subjects and requirements, equipping students n a with the best possible learning tools. This Global Edition t James Gerber i o preserves the cutting-edge approach and pedagogy of the n a original, but also features alterations, customization, and l E adaptation from the North American version. c o n o m i c s ES DE V ITE IN O T NH G This is a special edition of an established e title widely used by colleges and universities r b throughout the world. Pearson published this e r exclusive edition for the benefit of students outside the United States and Canada. If you purchased this book within the United States or Canada, you should be aware that it has EDGL been imported without the approval of the ITIOOB A Publisher or Author. NL Pearson Global Edition Gerber_07_1292214163_Final.indd 1 02/05/17 12:51 PM International Economics S E V E N T H E D I T I O N G L O B A L E D I T I O N A01_GERB4160_07_GE_FM.indd 1 6/17/17 12:04 PM The Pearson Series in Economics Abel/Bernanke/Croushore Cooter/Ulen Heyne/Boettke/Prychitko Macroeconomics*† Law & Economics The Economic Way of Thinking Bade/Parkin Downs Hoffman/Averett Foundations of Economics*† An Economic Theory of Women and the Economy: Democracy Family, Work, and Pay Berck/Helfand The Economics of the Ehrenberg/Smith Holt Environment Modern Labor Economics Markets, Games, & Strategic Behavior Bierman/Fernandez Farnham Game Theory with Economic Economics for Managers Hubbard/O’Brien Applications Economics*† Folland/Goodman/Stano Blanchard The Economics of Health and Money, Banking, and the Macroeconomics*† Health Care Financial System* Blau/Ferber/Winkler Fort Hubbard/O’Brien/Rafferty The Economics of Women, Men Sports Economics Macroeconomics* and Work Froyen Hughes/Cain Boardman/Greenberg/Vining/ Macroeconomics American Economic History Weimer Cost-Benefit Analysis Fusfeld Husted/Melvin The Age of the Economist International Economics Boyer Principles of Transportation Economics Gerber Jehle/Reny International Economics*† Advanced Microeconomic Theory Branson Macroeconomic Theory and González-Rivera Policy Forecasting for Economics and Johnson-Lans Business A Health Economics Primer Brock/Adams The Structure of American Gordon Keat/Young Industry Macroeconomics* Managerial Economics Bruce Greene Klein Public Finance and the Ameri- Econometric Analysis† Mathematical Methods for can Economy Economics Gregory Carlton/Perloff Essentials of Economics Krugman/Obstfeld/Melitz Modern Industrial Organization† International Economics: Theory and Policy*† Gregory/Stuart Russian and Soviet Economic Case/Fair/Oster Principles of Economics*† Performance and Structure Laidler The Demand for Money Hartwick/Olewiler Caves/Frankel/Jones World Trade and Payments: An The Economics of Natural Leeds/von Allmen Introduction Resource Use The Economics of Sports† Chapman Heilbroner/Milberg Leeds/von Allmen/Schiming Environmental Economics: The Making of the Economic Economics* Society Theory, Application, and Policy A01_GERB4160_07_GE_FM.indd 2 6/17/17 12:04 PM Lipsey/Ragan/Storer Parkin Schiller Economics* Economics*† The Economics of Poverty and Discrimination Lynn Perloff Economic Development: Theory Microeconomics*† Sherman and Practice for a Divided Market Regulation World Microeconomics: Theory and Applications with Calculus*† Silberberg Miller Principles of Microeconomics Economics Today* Phelps Health Economics Stock/Watson Understanding Modern Introduction to Econometrics† Economics Pindyck/Rubinfeld Microeconomics*† Studenmund Miller/Benjamin Using Econometrics: A Practical The Economics of Macro Issues Guide† Riddell/Shackelford/Stamos/ Schneider Miller/Benjamin/North Economics: A Tool for Critically Tietenberg/Lewis The Economics of Public Issues Understanding Society Environmental and Natural Resource Economics Mills/Hamilton Ritter/Silber/Udell Urban Economics Principles of Money, Banking & Environmental Economics and Financial Markets* Policy Mishkin The Economics of Money, Roberts Todaro/Smith Banking, and Financial The Choice: A Fable of Free Economic Development Markets*† Trade and Protection Waldman The Economics of Money, Rohlf Microeconomics Banking, and Financial Markets, Introduction to Economic Business School Edition*† Reasoning Waldman/Jensen Industrial Organization: Theory Macroeconomics: Policy and Ruffin/Gregory and Practice Practice* Principles of Economics Walters/Walters/Appel/Callahan/ Murray Sargent Centanni/Maex/O’Neill Econometrics: A Modern Rational Expectations and Econversations: Today’s Introduction Inflation Students Discuss Today’s Issues Nafziger Sawyer/Sprinkle Weil The Economics of Developing International Economics Economic Growth Countries Scherer Williamson O’Sullivan/Sheffrin/Perez Industry Structure, Strategy, and Macroeconomics† Economics: Principles, Public Policy Applications and Tools*† *denotes MyLab Economics titles Log onto www.myeconlab.com to learn more †denotes the availability of a Global Edition A01_GERB4160_07_GE_FM.indd 3 6/17/17 12:04 PM This page intentionally left blank A01_RAMA7654_08_SE_FM.indd 1 09/03/2017 17:58 Contents 5 International Economics James Gerber San Diego State University S E V E N T H E D I T I O N G L O B A L E D I T I O N A01_GERB4160_07_GE_FM.indd 5 6/17/17 12:04 PM For Monica and Elizabeth. Vice President, Business Publishing: Donna Battista Managing Producer, Business: Alison Kalil Director of Portfolio Management: Adrienne DA’ mbrosio Operations Specialist: Carol Melville Director, Courseware Portfolio Management: Ashley Senior Manufacturing Controller, Production, Global Dodge Edition: Trudy Kimber Editorial Assistant: Michelle Zeng Creative Director: Blair Brown Senior Sponsoring Editor: Neeraj Bhalla Manager, Learning Tools: Brian Surette Associate Acquisitions Editor, Global Edition: Ananya Content Developer, Learning Tools: Lindsey Sloan Srivastava Managing Producer, Digital Studio, Arts and Business: Project Editor, Global Edition: Punita Mann Diane Lombardo Content Producer, Global Edition: Nikhil Rakshit Digital Studio Producer: Melissa Honig Vice President, Product Marketing: Roxanne McCarley Digital Studio Producer: Alana Coles Director of Strategic Marketing: Brad Parkins Digital Content Project Lead: Courtney Kamauf Strategic Marketing Manager: Deborah Strickland Media Production Manager, Global Edition: Vikram Product Marketer: Tricia Murphy Kumar Field Marketing Manager: Ramona Elmer Full-Service Project Management and Composition: Product Marketing Assistant: Jessica Quazza SPi Global Vice President, Production and Digital Studio, Arts and Interior Design: SPi Global Business: Etain O’Dea Cover Design: Lumina Datamatics, Inc. Director of Production, Business: Jeff Holcomb Cover Art: Brian A. Jackson/Shutterstock Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsonglobaleditions.com © Pearson Education Limited 2018 The rights of James Gerber to be identified as the authors of this work have been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. Authorized adaptation from the United States edition, entitled International Economics, 7th edition, ISBN 978-0-13- 447209-6, by James Gerber, published by Pearson Education © 2018. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a license permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. ISBN 10: 1-292-21416-3 ISBN 13: 978-1-292-21416-0 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. 10 9 8 7 6 5 4 3 2 1 14 13 12 11 10 Typeset in Times Ten LT Std by SPi Global Printed and bound by Vivar in Malaysia A01_GERB4160_07_GE_FM.indd 6 6/17/17 12:04 PM BrIEF ConTEnTS Preface 17 ParT 1 Introduction and Institutions 25 Chapter 1 An Introduction to the World Economy 26 Chapter 2 International Economic Institutions Since World War II 41 ParT 2 International Trade 65 Chapter 3 Comparative Advantage and the Gains from Trade 66 Chapter 4 Comparative Advantage and Factor Endowments 89 Chapter 5 Beyond Comparative Advantage 118 Chapter 6 The Theory of Tariffs and Quotas 140 Chapter 7 Commercial Policy 162 Chapter 8 International Trade and Labor and Environmental Standards 182 ParT 3 International Finance 207 Chapter 9 Trade and the Balance of Payments 208 Chapter 10 Exchange Rates and Exchange Rate Systems 238 Chapter 11 An Introduction to Open Economy Macroeconomics 274 Chapter 12 International Financial Crises 300 ParT 4 regional Issues in the Global Economy 331 Chapter 13 The United States in the World Economy 332 Chapter 14 The European Union: Many Markets into One 358 Chapter 15 Trade and Policy Reform in Latin America 389 Chapter 16 Export-Oriented Growth in East Asia 416 Chapter 17 China and India in the World Economy 445 Glossary 471 Index 483 Suggested Readings are available at www.pearsonglobaleditions.com/Gerber 7 A01_GERB4160_07_GE_FM.indd 7 6/17/17 12:04 PM This page intentionally left blank A01_RAMA7654_08_SE_FM.indd 1 09/03/2017 17:58 ConTEnTS Preface 17 Capital Flows and the Debt of Developing Countries (Chapters 2, ParT 1 Introduction and 9, and 12) 38 Latin America and the World Institutions 25 Economy (Chapter 15) 38 Chapter 1 an Introduction to the Export-Led Growth in East Asia World Economy 26 (Chapter 16) 38 Introduction: International Economic China and India in the World Integration 26 Economy (Chapter 17) 39 Elements of International Economic Vocabulary 39 • Study Questions 39 Integration 27 The Growth of World Trade 28 Chapter 2 International Economic Capital and Labor Mobility 30 Institutions Since Features of Contemporary World War II 41 International Economic Relations 32 Trade and Economic Growth 34 Introduction: International Institutions and Issues Since World War II 41 Twelve Themes in International International Institutions 41 Economics 35 A Taxonomy of International The Gains from Trade and New Trade Economic Institutions 42 Theory (Chapters 3, 4, and 5) 35 Wages, Jobs, and Protection The ImF, the World Bank, and (Chapters 3, 6, 7, and 8) 35 the WTo 43 Trade Deficits (Chapters 9, 11, and 12) 36 The IMF and World Bank 43 Regional Trade Agreements The GATT, the Uruguay Round, (Chapters 2, 13, and 14) 36 and the WTO 44 The Resolution of Trade Conflicts CASE STUDY: The GATT Rounds 46 (Chapters 2, 7, and 8) 36 regional Trade agreements 47 The Role of International Five Types of Regional Trade Institutions (Chapters 2, 8, and 12) 37 Agreements 47 Exchange Rates and the CASE STUDY: Prominent Regional Macroeconomy (Chapters 10 Trade Agreements 48 and 11) 37 Regional Trade Agreements and Financial Crises and Global the WTO 50 Contagion (Chapter 12) 37 For and Against RTAs 51 9 A01_GERB4160_07_GE_FM.indd 9 6/17/17 12:04 PM

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