International Economics

Preface


1 The Study of International Economics

Part 1: The MonetaryTtheory of International Trade

2 Transferring Money Between Countries

2.1 Introduction

2.2 The Nature of an Exchange Rate

2.3 The Quotation of Foreign Exchange Rates

2.4 The Mechanism of International Payments

3 Determining Foreign Exchange Rates

3.1 Introduction

3.2 A Demand and Supply Model of the Market for Foreign Exchange

3.3 Orderly Cross Rates

3.4 Forward Exchange Rates

3.5 Leads and Lags

4 Exchange Rate Systems

4.1 Introduction

4.2 Description of Exchange Rate Systems

4.3 Floating Versus Fixed Rates

4.4 Exchange Rates in South Africa

5 The Balance of Payments

5.1 Introduction

5.2 Definitions and Classifications

5.3 Some Sample Transactions

5.4 Alternative Concepts of Balance

5.5 The Concept of an Overall Deficit or Surplus in the Balance of Payments

5.6 South Africa's Balance of Payments

6 Balance of Payments Adjustment: Monetary and Fiscal Policies

6.1 Introduction

6.2 Automatic Adjustments

6.3 National Income Analysis

6.3.1 National Income in a Closed Economy

6.3.2 National Income in an Open Economy

6.4 National Income Policies and the Balance of Payments

6.5 Conflicts Between Policy Goals

6.6 Selective Monetary and Fiscal Policies

7 Balance of Payments Adjustment: Exchange Rate Policy

7.1 Introduction

7.2 Devaluation: the Elasticities Approach

7.3 Devaluation: the Absorption Approach

7.4 Devaluation: A Monetarist Approach

7.5 The Use of Monetary, Fiscal and Exchange Rate Policies in Pursuing Internal and External Balance

7.6 Exchange Rate Forecasting

7.7 Freely Floating Exchange Rates

8 International Monetary Reserves

8.1 Introduction

8.2 The Period 1900-1945

8.3 The International Monetary Fund, 1945-1971

8.4 The Period Since 1971

8.5 The Eurocurrency Market

Part II: The Pure Theory of International Trade

9 Why Nations Trade: the Classical Theory

9.1 Introduction

9.2 The Mercantilists

9.3 The Law of Comparative Advantage

9.4 The Role of Money

9.5 Criticism of the Classical Theory

10 Why Nations Trade: the Modern Theory

10.1 Introduction

10.2 Some Preliminary Concepts

10.3 The Possibilities of Trade with Increasing Costs

10.4 Determination of the Terms of Trade: Offer Curve Analysis

10.5 Trade with Constant Costs

10.6 Trade with Decreasing Costs

11 The Basis of Trade

11.1 Introduction

11.2 The Ricardian Explanation

11.3 The Heckscher-Ohlin Theory

11.4 The Leontief Paradox

12 Trade theory: New Approaches and Extensions

12.1 Introduction

12.2 New Approaches to Trade Theory

12.3 Extensions to Trade Theory

13 Trade Under Changing Conditions

13.1 Introduction

13.2 Changes in Factor Endowments and Technology

13.3 Multinational Corporations and Direct Foreign Investment

14 Government Intervention in Trade

14.1 Introduction

14.2 Tariffs

14.3 Quotas

14.4 Other Intervention Measures

15 Economic Integration and Cooperation

15.1 Introduction

15.2 Economic Integration

15.3 Economic Cooperation

16 Trade and Economic Development: Problems of the Less Developed Countries

16.1 Introduction

16.2 The Critique of Trade

16.3 A proposed New International Economic Order

16.4 Growth Strategies

16.5 An Outline of Trade Strategies in South Africa

Index