New Features:

• NEW and updated pedagogical boxes:


• "In The Real World" boxes are designed to provide examples of current international issues and developments drawn straight from the news that illustrate the concepts developed in the chapter.
• "Concept Boxes" have been updated in situations where particularly critical concepts would benefit from further elaboration or graphical representation.
• "Titans of International Economics" boxes profile prominent figures in international economics.


• Updated topics of discussion: Includes recent developments in U.S. trade policy, major changes in the European Union, special issues related to developing nations as well as implications of the recent worldwide financial crisis/recession.
• Updated Chapter-Opening Vignettes: This feature was met with positive feedback after it was introduced in previous editions; as a result, they were updated in order to focus on the material's real-world applicability.
• Added Material: New material has been added regarding vertically integrated supply chains in Chapter 10. This has been added in conjunction with imperfect competition and intra-industry trade.
• New Appendixes: The authors have included in new appendixes to Chapters 25 and 26 materials that develops a more formal geological link between national income and the exchange rate.

Retained Features:

• Learning Objectives begin each chapter to help students focus on key concepts. These numbered and explicit learning objectives can also be useful to instructors in selecting material to cover in their respective classes.
• Simplified in its presentation, particularly with regard to Dornbusch-Fischer-Samuelson model, Krugman trade model, and empirical work on the monetary and portfolio approaches to external balance. This results in greater student accessibility, helping them learn the most important concepts in international economics.
• Chapter-Opening Vignettes begin nearly every chapter with a vignette or case study. These vignettes will introduce, in an applied setting, concepts and relationships that will be developed throughout the chapter. These are designed to stimulate student interest and inquisitiveness about the forthcoming material.
• Case Studies and Boxes not only tie concepts to real-world applications, but they help students learn by making the concepts more interesting and relevant. Most of the case studies have been updated, with many new cased studies added. Three types of material appear in the more than 100 boxes. These boxes serve to illuminate concepts and analysis under discussion. They give students an opportunity to see the relevance of the material to current events.
• "Reciprocal dumping model" and "gravity model" are included in the chapter on Post-Hecksher-Ohlin trade theories. This material will educate students on international economic debates taking place in the world today.
• Global economic environment discussions include the Asian Financial Crisis of 1997-98, issues surrounding criticism of World Trade Organization, and extensive coverage of the monetary union in Europe, NAFTA, and the currency derivative markets.
• Concept Checks are short "stopping points" at various intervals within chapters (about two per chapter). The concept checks pose questions that are designed to see if students have grasped the basic points made in the text.
• End-of-Chapter Questions and Problems are broader and more comprehensive than the questions contained in the concept checks and allow students to review material that they just learned.
• References for further reading are accessible sources that offer further theoretical and empirical exploration opportunities for interested students.
• Thorough development of the Classical trade model, which lies at the heart of economists' case for trade. Appleyard, Field, and Cobb's treatment of the subject includes more than two countries, more than two goods, money wages and prices, exchange rates, and transportation costs. This comprehensiveness will give students a solid grounding in historical approaches to the subject.
• Systematic presentation of the trade-wage inequality issue: The authors analyze this issue from different perspectives and emphasize that in addition to trade, recent technological advances also contribute to the rise in inequality.
• Review Chapters 5 and 24 quickly review micro and macro tools to refresh student knowledge of concepts learned in earlier courses.
• Reliance on the IS/LM/BP framework: Monetary material uses this framework for analyzing macroeconomic policy, while continuing to incorporate key aspects of the asset approach in the IS/LM/BP model.
• Clear exposition helps students learn more through clear exposition of lucid discussions.