International Trade / Edition 1

by Robert C. Feenstra, Alan M. Taylor

Overview

Combining classic international economics with straight-from-the-headlines immediacy, Feenstra and Taylor’s text seamlessly integrates the subject’s established core content with new topic areas and new ideas that have emerged from recent empirical studies.  Like no other textbook it brings cutting-edge theory, evidence, and policy analysis to the field of international economics.

 

International Economics is available as a complete textbook or in two split volumes: International Trade and International Macroeconomics.

Product Details

ISBN-13:	9781429206907
Publisher:	Worth Publishers
Publication date:	11/15/2007
Edition description:	First Edition
Pages:	432
Product dimensions:	8.29(w) x 9.64(h) x 0.59(d)

About the Author

Robert C. Feenstra is Professor of Economics at the University of California, Davis. He received his B.A. in 1977 from the University of British Columbia, Canada, and his Ph.D. in economics from MIT in 1981. Feenstra has been teaching international trade at the undergraduate and graduate levels at UC Davis since 1986, where he holds the C. Bryan Cameron Distinguished Chair in International Economics. Feenstra is a research associate of the National Bureau of Economic Research, where he directs the International Trade and Investment research program. He is the author of Offshoring in the Global Economy and Product Variety and the Gains from Trade (MIT Press, 2010). Feenstra received the Bernhard Harms Prize from the Institute for World Economics, Kiel, Germany, in 2006, and delivered the Ohlin Lectures at the Stockholm School of Economics in 2008. He lives in Davis, California, with his wife Gail, and has two grown children: Heather, who is a genetic counselor; and Evan, who recently graduated from Pitzer College.
 
Alan M. Taylor is Professor of Economics at the University of California, Davis. He received his B.A. in 1987 from King’s College, Cambridge, U.K and earned his Ph.D. in economics from Harvard University in 1992. Taylor has been teaching international macroeconomics, growth, and economic history at UC Davis since 1999, where he directs the Center for the Evolution of the Global Economy.  He is also a research associate of the National Bureau of Economic Research and coauthor (with Maurice Obstfeld) of Capital Markets: Integration, Crisis and Growth (Cambridge University Press, 2004). Taylor was awarded a Guggenheim Fellowship in 2004 and was a visiting professor at the American University in Paris and London Business School in 2005–06.  He lives in Davis, with his wife Claire, and has two young children, Olivia and Sebastian.

Table of Contents

Part One: Introduction to International Trade Chapter 1: Trade in the Global Economy
1.1 International Trade
The Basics of World Trade Map of World Trade Trade Compared to GDP Barriers to Trade
1.2 Migration and Foreign Direct Investment
Map of Migration Map of Foreign Direct Investment
1.3 Conclusions

Part Two: Patterns of International Trade Chapter 2: Trade and Technology: The Ricardian Model
2.1 Reasons for Trade
2.2 Ricardian Model
The Home Country The Foreign Country
Application: Comparative Advantage in Apparel, Textiles, and Wheat
2.3 Determining the Pattern of International Trade
International Trade Equilibrium Solving for Wages Across Countries
Application: Labor Productivity and Wages
2.4 Solving for International Prices
Home Export Supply Curve Foreign Import Demand Curve International Trade Equilibrium
Application: The Terms of Trade for Primary Commodities
2.5 Conclusions

Chapter 3: Gains and Losses from Trade in the Specific-Factors Model
3.1 The Specific-Factors Model
The Home Country The Foreign Country Overall Gains from Trade
Application: How Large are the Gains from Trade?
3.2 Earnings of Labor
Determination of Wages Change in Relative Price of Manufactures
Application: Manufacturing and Services in the U.S.: Employment and Wages across Sectors
Application: Trade Adjustment Assistance Programs: Financing the Adjustment Costs of Trade
3.3 Earnings of Capital and Land
Determining the Payments to Capital and Land Numerical Example What It All Means
Application: Prices in Agriculture
3.4 Conclusions

Chapter 4: Trade and Resources: The Heckscher-Ohlin Model
4.1 Heckscher-Ohlin Model
Assumptions of the Heckscher-Ohlin Model
Application: Are Factor Intensities the Same Across Countries?
No Trade Equilibrium Free Trade Equilibrium Testing the Heckscher-Ohlin Theorem: Leontief’s Paradox
4.2 Effect of Trade on Factor Prices
Effect of Trade on the Wage and Rental Determination of the Real Wage and Real Rental Changes in the Real Wage and Rental: Numerical Example
Application: Opinions Toward Free Trade Comparing the Wage and Rental Across Countries
4.3 Extending the Heckscher-Ohlin Model
Many Goods, Factors and Countries Differing Productivities Across Countries Extending the Heckscher-Ohlin Theorem
Application: Why Did India Import Cotton Textiles?
4.4 Conclusions
Appendix: The "Sign Test" in the Heckscher-Ohlin Model

Chapter 5: Movement of Labor and Capital Between Countries
5.1 Movement of Labor Between Countries
Effect of Immigration in the Short Run: the Specific Factors Model
Application: Immigration to the New World
Application: Immigration to the U.S. and Europe Today Other Effects of Immigration in the Short Run Effects of Immigration in the Long Run
Application: The Effects of the Mariel Boat Lift on Industry Output in Miami
Application: Immigration and U.S. Wages, 1990-2004
5.2 The Movement of Capital Between Countries: Foreign Direct Investment
Application: Acquisition Investment into the United States Greenfield Investment FDI In the Short Run: the Specific Factors Model FDI In the Long Run
Application: The Effect of FDI on Rentals and Wages in Singapore
5.3 Gains from Labor and Capital Flows
Gains from Immigration
Application: Gains from Migration Gains from Foreign Direct Investment
5.4 Conclusions

Part Three: New Explanations for International Trade Chapter 6: Increasing Returns to Scale and Imperfect Competition
6.1 Basics of Imperfect Competition
Monopoly Equilibrium Demand with Duopoly
6.2 Trade Under Monopolistic Competition
Equilibrium without Trade Equilibrium with Free Trade
6.3 Empiricals of Monopolistic Competition and Trade
Gains and Adjustment Costs for Canada Gains and Adjustment Costs for Mexico Gains and Adjustment Costs for the United States Summary of NAFTA Intra-industry Trade The Gravity Equation
Application: The Gravity Equation for Canada and the United States Trade within Canada
6.4 Imperfect Competition with Homogeneous Products: The Case of Dumping
A Model of Product Dumping Numerical Example of Dumping Reciprocal Dumping Numerical Example of Reciprocal Dumping
6.5 Conclusions

Chapter 7: Foreign Outsourcing of Goods and Services
Application: Is Trade Today Different From the Past?
7.1 A Model of Outsourcing
Value Chain of Activities Changing the Costs of Trade
Application: Change in Relative Wages Across Countries Change in Relative Wages in the United States Change in Relative Wages in Mexico
7.2 The Gains from Outsourcing
Simplified Outsourcing Model Terms of Trade
Application: U.S. Terms of Trade and Service Exports
Application: Impact of Outsourcing on U.S. Productivity
7.3 Outsourcing in Services
The Logic of Service Outsourcing The Future of U.S. Comparative Advantage
7.4 Conclusions

Part Four: International Trade Policies
Chapter 8: Import Tariffs and Quotas under Perfect Competition
8.1 A Brief History of the World Trade Organization
8.2 The Gains from Trade
Consumer and Producer Surplus Home Welfare Home Import Demand Curve
8.3 Import Tariffs in a Small Country
Free Trade in a Small Country Effect of the Tariff Why are Tariffs Used?
Application: U.S. Tariffs on Steel Deadweight Loss due to the Steel Tariff Response of the European Countries
8.4 Imports Tariffs for a Large Country
Foreign Export Supply Effect of the Tariff
Application: U.S. Tariffs on Steel Once Again
8.5 Import Quotas
Import Quota in a Small Country Costs of Import Quotas in the U.S.
Application: China and the Multifibre Arrangement
8.6 Conclusions

Chapter 9: Import Tariffs and Quotas under Imperfect Competition
9.1 Tariffs and Quotas with Home Monopoly
No Trade Equilibrium Free Trade Equilibrium Effect of a Home Tariff Effect of a Home Quota
Application: U.S. Imports of Japanese Automobiles
9.2 Infant Industry Protection
Free Trade Equilibrium Tariff Equilibrium
Application: Examples of Infant Industry Protection Protecting the Automobile industry in China Computers in Brazil U.S. Tariff on Heavyweight Motorcycles
9.3 Tariffs with Foreign Monopoly
Foreign Monopoly
Application: Import Tariffs on Japanese Trucks
9.4 Policy Response to Dumping
Antidumping Duty Countervailing Duty Comparison with Safeguard Tariff Calculation of Antidumping Duty
Application: Antidumping/ Countervailing Duties versus Safeguard Tariffs
9.5 Conclusions

Chapter 10: Export Subsidies IN Agriculture and High Technology Industries
10.1 WTO Goals on Agricultural Export Subsidies
Agricultural Export Subsidies Other Matters From the Hong Kong WTO Meeting
10.2 Agricultural Export Subsidies in a Small Home Country
Impact of an Export Subsidy
10. 3 Agricultural Export Subsidies in a Large Home Country Effects of the Subsidy
Application: Who Gains and Who Loses?
10.4 Agricultural Production Subsidies
Effect of a Production Subsidy in a Small Home Country Effect of a Production Subsidy in a Large Home Country
10.5 High-Technology Export Subsidies
"Strategic" Use of High-Tech Export Subsidies Effect of at Subsidy to Airbus Subsidy with Cost Advantage for Boeing
Application: Subsidies to Commercial Aircraft
10.6 Conclusions

Chapter 11: International Agreements: Trade, Labor and the Environment
11.1 International Trade Agreements
The Logic of Multilateral Trade Agreements Regional Trade Agreements Trade Creation and Trade Diversion Numerical Example of Trade Creation and Diversion Trade Diversion in a Graph
Application: Trade Creation and Diversion for Canada
11.2 International Agreements on Labor Issues
Labor Side Agreement under NAFTA Other Labor Agreements
11.3 International Agreements on the Environment
Environmental Issues in the GATT and WTO Does Trade Help or Harm the Environment?
The Tragedy of the Commons International Agreements on Pollution
Application: The Kyoto Protocol
11.4 Conclusions