Includes bibliographical references and index.

Contents: Introduction -- Labor productivity and comparative advantage: the ricardian model -- Specific factors and income distribution -- Resources and trade: the hecscher-ohlin model -- The standard trade model -- Economies of scale, imperfect competition and international trade -- International factor movements -- REgional economic issues -- The instruments of trade policy -- The political economy of trade policy -- Trade policy in developing countries -- Industrial policy in advanced countries -- National income accounting and the balance of payments -- Exchange rates and the foreign exchange market: an asset approach -- Money, interest rates and exchange rates -- Price levels and the exchange rate in the long run -- Output and the exchange rate in the short run -- Fixed exchange rates and foreign exchange intervention -- The International monetary system, 1870-1973 -- Macroeconomic policy and coordination under floating exchange -- Optimum currency areas and the European experience -- The Global capital market: performance and policy problems -- Developing countries: debt, stabilization and reform -- International economic problems of former communist countries.