The Addison-Wesley Ser amen Sea vice ican gestae ae comnene {ior fpteson oe Poke Smet a eee Eee. emt "a ete ‘eer Ket ioe rman eae, ste a ‘Sette ‘ero vac Try a an pec "The Feces oP see 5 in Economics fea Path Emer fe oa os cee cred See aes Sea oa senor te ree ST sna id a eur ‘oun Decloant Naltenlenen ‘nal Oot: Tere International Economics Theory and Policy SIXTH EDITION Paul R. Krugman Princeton University Maurice Obstfeld University of California, Berkeley wise, ae aston Sn Face New ok london Toronto Sydney Tokyo Singapore Madeit Mexico City Manic Paris Cape Town Hong Kong Montesa = E05 ingens "Lec han $10 ben pa year =$10-20bi8on| = 820-10 en 8100-18000 MR «oer scossyFor Robin and Leslie Ann to-n-Chiet: Denise Clinton Executive Developmeat Manager Sylvia Mallory Developmont Editor: Jane Tatts ‘Web Development: Melissa Honig, Managing Esior: Iomes Rigney Prodction Supervisor: Katherine Watson Design Manage: Regina Kolerds ‘Text Design, Electronic Compesition, sd Pract Manageme: lm Street Publishing Serves ne (Cover Designer: Regina Kolenda (Cover Lmage: © Digital Vision Li ‘Supplements Editor: Andrea Basso Marketing Manager: Addieone D'Ambrosio Manufactoring Coordinator: Hugh Crawford International Reonomics: Theory and Pulicy CCopycight © 2003 by Pau R. Kruginan and Maurie Obstetd Aight eer No pr of hs pletion may be repodee, dared ia rei ‘So eens ay fx rby ay meat, leone, econ Rca tg oar tothe pe writen coc of he pls Eorintosaton toting peo he of ler os or, please tans writen equa io Peon Bouton, in Rigs an Contacts Depart, 5 gon SS 9 Boson, MA C2116 ax our ques (617) 48-147 Frined he Unto Sites Anca ISBN: 0321-11638.9, WORLD STUDENT SERIES “This edition may be sld only in those courtees to whichis consigned by Pearson Education Internationa. I ¢ not o be ee-expored and itis not for sal in the US.A. ‘or Canada. 123456789 10-CRW06 05 04 63 02 Part 3 2 1B 14 15 16 7 Part 4 18 19 2 22 BRIEF CONTENTS coments Price International Trade Theory Labor Productivity and Comparative Advantage: ‘The Ricardian Model Specific Factors and Income Distribation Resources and Trade: The Hecktcher-Ohlin Model The Standatd Trade Model Economies of Seale, Imperfect Competition, and International Trade International Fector Movements International Trade Policy ‘The Instruments of Trade Policy ‘The Political Economy of Trade Policy ‘Trade Policy in Developing Countries Controversies in Trade Policy Exchange Rates and Open-Economy Macroeconomi National Income Accounting and the Balance of Payments Exchange Rates and the Foreign Exchange Market: ‘An Asset Approach Money, Interest Rates, and Exchange Rates Price Levels and the Exchange Rate in the Long Run Cuiput and the Exehenge Rate inthe Short Rua Fixed Exchange Rates and Foreign Exchange Intervention International Macroeconomic Policy ‘The Intecnational Monetary System, 1870-1973 Macroeconomic Policy and Coordination under Floating Exchange Rates (Optimum Currency Areas and the European Experience ‘The Global Capital Market: Performance and Policy Problems Developing Counties: Growth, Crisis, and Reform 10 38 a 120 160 las 186 218 255 26 293 324 357 388 433 4a 531 532 568 36.