Chapter organization Introduction The Concept of Comparative Advantage A One-Factor Economy Trade in a One-Factor World Comparative Advantage with Many Goods Adding Transport Costs and Nontraded Goods Summary
Chapter Organization Introduction A Model of a Two-Factor Economy Effects of International Trade Between Two-Factor Economies Empirical Evidence on the Heckscher-- Model Summary Appendix: Factor Prices, Goods Prices, and Input Choices
Countries engage in international trade for two basic reasons Countries trade because they differ either in their resources or in technology Countries trade in order to achieve scale economies or increasing returns in production
Chapter Organization Introduction Basic Tariff Analysis Costs and Benefits of a Tariff Other Instruments of Trade Policy The Effects of Trade Policy: A Summary Summary Appendix I: Tariff Analysis in General Equilibrium Appendix II: Tariffs and Import Quotas in the Presence of Monopoly
Chapter Organization Introduction Import-Substituting Industrialization Problems of the Dual Economy Export-Oriented Industrialization: The East Asian Miracle Summary
Chapter Organization Introduction Money Defined: A Brief Review The Demand for Money by Individuals Aggregate Money Demand The Equilibrium Interest Rate The Interaction of Money Supply and Demand
Determinants of Aggregate Demand in an Open Economy The Equation of Aggregate Demand How Output Is Determined in the Short run Output Market Equilibrium in the Sort run: The DD Schedul Asset Market Equilibrium in the Short Run: The AA Schedule
