All nations participate in international trade, and for most economies, a substantial share of domestic output is exported, and a large part of total expenditure is on imported items. International trade is a central concern of all governments' economic policies. This book provides an introduction to the economic analysis of international trade policies, focusing on the effects of various policies and using this positive analysis both to determine which trade policies should be adopted and to explain why existing policies have been adopted.Aimed at students with a fairly rudimentary background in economic principles, and concentrating exclusively on trade issues, the book will be adopted on numerous courses in international economics. It features the most up-to-date material in the field, including imperfect competition, intra-industry trade, and the political economy of tariff barriers: and draws on examples from a range of countries at all levels of development.
Part I: Modelling International Trade:.
2. Why do countries trade with each other?.
3. A General Equilibrium Model of International Trade.
4. A Partial Equilibrium Model of International Trade.
5. The Core Propositions of Neoclassical Trade Theory.
Part II: Extensions and Modifications to the Basic Model:.
6. Empirical Tests of Simple Trade Theories.
7. Technology-based Trade Theories.
8. Economies of Scale, Imperfect Competition, and Intra-Industry Trade.
Part III: Trade Policies:.
10. Economic Effects of a Tariff.
11. Non-Tariff Barriers to Trade.
12. Arguments used in support of Trade Barriers.
13. Measuring the Effects of Trade Barriers.
14. The Political Economy of Trade Barriers.
15. Discriminatory Trade Policies.
16. International Trade and Economic Development.
Part IV: Beyond Pure Trade Theory:.
17. International Factor Movements, Trade in Services, and the BOP.
18. Trade Policy when the BOP is in Disequilibrium.
19. Exchange Rate Movements and International Trade.