When conducting monetary and fiscal policy, policymakers often look be- yond their own country's borders Even if domestic prosperity is their sole ob jective, it is necessary for them to consider the rest of the world. The international flow of goods and services and the international flow of capital can affect an economy in profound ways. Policymakers ignore these effects at In this chapter we extend our analysis of aggregate demand to include inter- national trade and finance. The model developed in this chapter, called the Mundell-Fleming model, is an open-economy version of the IS-LM model. Both models stress the interaction between the goods market and the money market. Both models assume that the price level is fixed and then show what

1 Financial Crisis: A Hardy Perennial 1 2 Anatomy of a Typical Crisis 24 3 Speculative Manias 38 4 Fueling the Flames: The Expansion of Credit 64 5 The Critical Stage 90 6 Euphoria and Economic Booms 113 7 International Contagion 123 8 Bubble Contagion: Tokyo to Bangkok to New York 142 9 Frauds, Swindles, and the Credit Cycle 165 10 Policy Responses: Letting It Burn Out, and Other Devices 203 11 The Domestic Lender of Last Resort 225 12 The International Lender of Last Resort 243 13 The Lessons of History and the Most Tumultuous

◼ 1.To learn the most commonly used instruments of payment– bill of exchange, promissory note and cheques. ◼ 2.To learn the methods of payment in international trade– remittance, collection, letter of credit and bank guarantee

Introduction What is International Economics About? International Economics: Trade and Money

 熟悉国际银行业务  了解主要的国际金融支付系统

• 了解国际金融市场一体化的收益和风险 • 熟悉国际金融市场上的机构投资者 • 掌握国际组合投资的原理和渠道

1. What is international trade about? The gains from trade(贸易所得) The pattern of trade(贸易格局) The effects of trade(贸易福利效应) Balance between liberalism and protectionism(贸易政策的决策) 2. The basic conceptions of IT

1. Rise of Intra-industry Trade 2. Increase in Trade among Industrialized Countries

Chapter Organization Introduction A Standard Model of Trading Economy International Transfers of Income: Shifting the RD Curve Tariffs and Export Subsidies: Simultaneous Shifts in RS and RD Summary Appendix: Representing International Equilibrium with Offer Curves Copyright2003 Pearson Education,inc

1 What Is Economics 2 Needs and Wants 3 Supply and Demand 4 Consumer Market In China 　 5 What Is International Business? 6 Brief History of Business 7 Business Environment 8 What is Production 9 Factors of Production 10 Product Life Cycle 11 PRODUCT ADAPTATION AND PRESENTATION 12 PRODUCT PACKAGING AND LABELING 　 13 INTERNATIONAL MARKET RESEARCH 14 MARKET SELECTION 15 FREE TRADE 16 TARIFF BARRIER 17 Non-Tariff Barrier 18 Trade Fairs 　 19 The World Trade Organization 　 20 What is Exporting 21 Export Procedure 22 Export Product 　 23 Export Marketing 24 Export Marking 25 Export Communications 26 Export Documentation 27 Export Contract 28 Export Pricing 29 Money 30 The Story of Banking 　 31 Documentary Collection 32 Documentary Credit 33 The Story of Transport 34 Ocean Freight 35 Air Transport 36 The Story of Insurance