Retained Features:

• AS/AD Framework Appendix: This appendix presents the aggregate demand-aggregate supply framework as an approach to open-economy macroeconomics. This provides flexibility for instructors who would like to include this approach in their course.
• Labor Issues Discussed: The book continues to weave discussion of labor issues into a number of chapters in Parts I and II.
• WTO Discussions: Consistent discussion of and reference to the World Trade Organization (WTO) in international trade policy.
• Trade and the Environment:  The chapter on international environmental issues continues as a unique and powerful treatment of issues of major interest to many students.  It includes discussion of such topics as WTO rulings on environmental policies that affect international trade, transborder pollution, ozone depletion, and global warming.
• Export Dumping: The material on the dumping of exports includes data on recent anti-dumping actions and the discussion of the use of anti-dumping policy as a protectionist device. This is important because the number of countries that use these anti-dumping policies has been rising, and the U.S. is now a major user of these policies and a major target of them.
• NAFTA: The discussion of NAFTA includes a treatment of the important rules of origin. MERCOSUR, the free trade area of South American countries, is also discussed; this is significant because this is the first effective free trade area among developing countries.
• End-of-Chapter Questions: each chapter has at least ten questions and problems. Every odd-numbered problem has an answer provided at the back of the text. Students are able to check their understanding of the material more effectively.
• Balanced Coverage: The text covers all of the conventional topics in International Economics while grappling with the issues that are being discussed in today's economic journals and newspapers.
• Real Situations: Applications taken from real economic situations appear in two-color boxes, so students immediately see the relevance of theory to world economics.