A unified structure reveals theory andapplications of trade and finance
• The text presents a balance of theoretical and practical coverage of both trade and finance. For each topic area, chapters on core theory are followed by a series of application chapters that confront policy questions using the newest empirical work, data, and policy debates. This structure enables students to grasp theoretical concepts and then see those same concepts in action, aiding retention and highlighting the relevance of course material.
• Sections in the texts first half provide engaging and practical coverage of the tenets and applications of international trade. Highlights include:
• An integrated, empirical-based treatment of the latest models of trade, such as the gravity, Ricardian, factor endowments, and imperfect competition models.
• A thorough discussion of the causes and effects of trade policy focused on the income-distribution effects of trade.
• An emphasis on the potential substitutability of international trade and international movements of factors of production, featuring an analysis of international borrowing and lending as intertemporal trade.
• Content in the latter half of the text brings the concepts and applications of international finance to life. Highlights include:
• A unified model of open-economy macroeconomics that provides students with a cohesive approach to the theory, based on an asset-market approach to exchange rate determination with expectations in a central role.
• A discussion of the international monetary experience that stresses the idea that different exchange rate systems lead to different policy coordination problems.
Discussions use the newest data to highlight recent developmentsin international economics theory and policy
• NEW and UPDATED - The following chapters provide new or updated discussion of:
• the impacts of Brexit and COVID-19 (Chapter 7)
• firms' global sourcing decisions and the new USMCA treaty (Chapter 8)
• USChina trade tensions (Chapter 10)
• the effects of the Trump trade war on global trade and the COVID-19 pandemic (Chapter 19)
• the Dec. 2020 EUUK trade deal plus the prior withdrawal agreement and its implications for the Irish border (Chapter 21)
• euro area policy innovations in response to COVID-19 (Chapter 21)
Learner-focused tools help them master the course material
• Learning Goals list essential concepts so students understand what they need to take away from each chapter.
• NEW and UPDATED - Case Studies engage students with theory and practice, using real-world applications and events that provide important historical context. New case studies examine the potential link between import competition from developing countries and declines in manufacturing employment in the US (Chapter 4), the gains to US consumers from Chinese imports (Chapter 6), and the distributional consequences of the Trump trade war (Chapter 9).
• UPDATED - Special Boxes offer vivid illustrations and videos of points made in the text, to better explain particular concepts in an engaging fashion and help students better understand key material. New boxes discuss President Trumps trade war (Chapter 4), the impact of trade shocks on developing countries (Chapter 6), currency manipulation (Chapter 19), the global financial cycle (Chapter 22), and much more.
• Captioned Diagrams, Summaries, and Key Terms reinforce discussions and/or recap the major points in the text to aid students in their study.
• End-of-chapter assignable problems, many of which cite real data or policies, allow students to practice what theyre learning. They range from routine computational drills to more analytical questions and problems.
MyLab® Economics is not included. Students, if Pearson MyLab Economics is arecommended/mandatory component of the course, please ask your instructor forthe correct ISBN. Pearson MyLab Economics should only be purchased whenrequired by an instructor. Instructors, contact your Pearson representative formore information.
Teach your course your way
• Homework and practice exercises in MyLab are correlated to the exercises in the text, reflecting each authors approach and learning style. They regenerate algorithmically to give students unlimited opportunity for practice and mastery.
• Every week, microeconomic and macroeconomic news stories and accompanying exercises are posted to MyLab. Assignable, these multi-part exercises ask students to recognize and apply economic concepts to current events.
Deliver trusted content
• Easy to assign, Real-Time Data Analysis Exercises use up-to-the-minute, real-time macroeconomic data from the Federal Reserve Bank of St. Louiss FRED site, to test students knowledge.
• Animated Graphs in MyLab accompany many of the key graphs and figures in the text and have been updated with real-time data from FRED. These animated graphs help students understand shifts in curves, movements along curves, and changes in equilibrium values.
Empower learners
• NEW - Dynamic Study Modules use the latest developments in cognitive science and help students study chapter topics by adapting to their performance in real time.
• Digital Interactives are dynamic and engaging assessment activities that promote critical thinking and the application of key economic principles. Many Digital Interactives also include real-time data from FRED, allowing professors and students to display up-to-the-minute data in key areas. Digital Interactives can be assigned and graded within MyLab or used as a lecture tool to encourage engagement and classroom conversation.
