New Features:

• Four Introductory Key Events: The four "key events" for Chapter 1 in this new edition are: a new discussion on outsourcing, an updated discussion of "Poor Workers in Poor Countries," a new discussion on the expansion of the European Union which includes an updated discussion of the euro and a new discussion entitled "China Revalues its Currency."
• Focus on China: A new series of text boxes entitled "Focus on China" addresses the growing importance of China and the interesting economic issues specific to China and the US trade relationships with China.
• New Glossary: A new Glossary, listing all the key terms from the chapters and their definitions, is available on the website. Key terms (without their definitions) from each chapter are now also listed in the end matter between the Summary and Suggested Reading.
• Easier Reading: Larger font size for the captions makes them easier to read and more bullet-point lists break up the long paragraphs, making densely packed information easier to understand.
• Split Chapter: Chapter 3 in the last edition was rather long, and in this edition this chapter is divided into two, with the new Chapter 3 focusing on the concepts of absolute and comparative advantage from Smith and Ricardo, and the new Chapter 4 presenting the Heckscher-Ohlin theory and the tools that economists use to develop this theory.
• Streamlined Chapter: Chapter 16 has been streamlined to focus on the use and meaning of balance of payments information. While basic accounting principles underlying the balance of payments are explained, details of posting specific transactions are moved to the new Appendix E. In addition, the presentation of the U.S. balance of payments as an example is now in a more user-friendly format. These U.S. data for 2004 provide an excellent launching base for discussions of the meaning of current account deficits and the link of the overall balance to intervention in the foreign exchange market.
• New Case Studies: A new Case Study box in Chapter 9 describes the global web of quantitative limits on trade in clothing and textiles (the Multifibre Arrangement) and the negotiated end to these limits as of January 1, 2005. The box also discusses the new limits imposed during 2005 by the United States and the European Union on imports from China, so that the "temporary" trade restraints have been resurrected. A new Case Study box in Chapter 11 brings life to strategic trade policy by presenting the WTO dispute cases in which the U.S. government has accused the European Union of subsidizing Airbus, and the European Union has accused the U.S. government of subsidizing Boeing.
• Latest Sources: Material was created using the latest available sources to update the wide range of data and information presented in the figures and text of the book. Among many other updates, the book offers the latest information on factor endowments, trends in the relative prices of primary products, patterns of foreign direct investments broadly and by major home country, the sizes of foreign exchange trading and foreign exchange futures, swaps, and options, evidence about relative purchasing power parity, and the exchange rate policies chosen by national governments.