This is completed downloadable of Solution Manual for International Economics 17th Edition

Product Details:

ISBN-10 ‏ : ‎ 1337558931
ISBN-13 ‏ : ‎ 978-1337558938
Author: Robert Carbaugh

Discover the proven, market-leading text that is a favorite among students of all backgrounds for its clear, concise treatment of international trade and finance theory. Carbaugh’s INTERNATIONAL ECONOMICS, 17E uses a wealth of contemporary examples and practical applications to vividly demonstrate the relevance of the theory you are learning to real economic issues and global policy questions. The author presents both written and graphical discussions, making the book highly understandable even if you have little economics background. This edition reflects the latest theoretical developments with a continued emphasis on current applications to keep your instruction current and interesting. You will soon discover, “If it’s clear, concise, and contemporary, it has to be Carbaugh.”

Table of Content:

PART 1: International Trade Relations
CHAPTER 1: The International Economy and Globalization
Economic Interdependence: Federal Reserve Policy Incites Global Backlash
Globalization of Economic Activity
U.S. Apple Growers Not Overly Worried about Chinese Imports
Waves of Globalization
First Wave of Globalization: 1870–1914
Second Wave of Globalization: 1945–1980
Latest Wave of Globalization
Diesel Engines and Gas Turbines as Movers of Globalization
The United States as an Open Economy
Trade Patterns
Labor and Capital
Why Is Globalization Important?
Globalization and Competition
Globalization Forces Kodak to Reinvent Itself
Bicycle Imports Force Schwinn to Downshift
Element Electronics Survives by Moving TV Production to America
Common Fallacies of International Trade
Is the United States Losing Its Innovation Edge?
Is International Trade an Opportunity or a Threat to Workers?
Has Globalization Gone Too Far?
The Plan of This Text
Summary
Key Concepts and Terms
Study Questions
CHAPTER 2: Foundations of Modern Trade Theory: Comparative Advantage
Historical Development of Modern Trade Theory
The Mercantilists
Why Nations Trade: Absolute Advantage
Adam Smith and David Ricardo
Why Nations Trade: Comparative Advantage
Production Possibilities Frontiers
Trading under Constant-Cost Conditions
Basis for Trade and Direction of Trade
Production Gains from Specialization
Babe Ruth and the Principle of Comparative Advantage
Consumption Gains from Trade
Distributing the Gains from Trade
Equilibrium Terms of Trade
Terms of Trade Estimates
Dynamic Gains from Trade: Economic Growth
Changing Comparative Advantage
Natural Gas Boom Fuels Debate
Trading under Increasing-Cost Conditions
Increasing-Cost Trading Case
Partial Specialization
The Impact of Trade on Jobs
Wooster, Ohio Bears the Brunt of Globalization
Comparative Advantage Extended to Many Products and Countries
More Than Two Products
More Than Two Countries
Factor Mobility, Exit Barriers, and Trade
Empirical Evidence on Comparative Advantage
Can American Workers Compete with Low-Wage Workers Abroad?
The Case for Free Trade
Comparative Advantage and Global Supply Chains
Advantages and Disadvantages of Outsourcing
Outsourcing and the U.S. Automobile Industry
The iPhone Economy and Global Supply Chains
Outsourcing Backfires for Boeing 787 Dreamliner
Reshoring Production to the United States
Deindustrialization Redeploys Workers to Growing Service Sector
Summary
Key Concepts and Terms
Study Questions
CHAPTER 3: Sources of Comparative Advantage
Factor Endowments as a Source of Comparative Advantage
The Factor-Endowment Theory
Visualizing the Factor-Endowment Theory
Applying the Factor-Endowment Theory to U.S.–China Trade
Chinese Manufacturers Beset by Rising Wages and a Rising Yuan
Does Trade with China Take Away Blue-Collar American Jobs?
Factor-Price Equalization
Globalization Drives Changes for U.S. Automakers
Is International Trade a Substitute for Migration?
Specific-Factors Theory: Trade and the Distribution of Income
Does Trade Make the Poor Even Poorer?
Is International Trade Responsible for the Loss of American Manufacturing Jobs? How about Robots
Is the Factor-Endowment Theory a Good Predictor of Trade Patterns? The Leontief Paradox
Economies of Scale and Comparative Advantage
Internal Economies of Scale
External Economies of Scale
Does a “Flat World” Make Ricardo Wrong?
Overlapping Demands as a Basis for Trade
Intra-industry Trade
Technology as a Source of Comparative Advantage: The Product Cycle Theory
Radios, Pocket Calculators, and the International Product Cycle
Japan Fades in the Electronics Industry
Dynamic Comparative Advantage: Industrial Policy
World Trade Organization Rules That Illegal Government Subsidies Support Boeing and Airbus
Government Regulatory Policies and Comparative Advantage
Do Labor Unions Stifle Competitiveness?
Transportation Costs and Comparative Advantage
Trade Effects
Falling Transportation Costs Foster Trade
How Containers Revolutionized the World of Shipping
The Port of Prince Rupert: Shifting Competitiveness in Shipping Routes
Summary
Key Concepts and Terms
Study Questions
CHAPTER 4: Tariffs
The Tariff Concept
Types of Tariffs
Specific Tariff
Ad Valorem Tariff
Compound Tariff
Trade Protectionism Intensifies as Global Economy Falls into the Great Recession
Effective Rate of Protection
Tariff Escalation
Outsourcing and Offshore Assembly Provision
Dodging Import Tariffs: Tariff Avoidance and Tariff Evasion
Ford Strips Its Wagons to Avoid a High Tariff
Smuggled Steel Evades U.S. Tariffs
Postponing Import Tariffs
Gains from Eliminating Import Tariffs
Bonded Warehouse
Foreign-Trade Zone
FTZs Benefit Motor Vehicle Importers
Tariff Effects: An Overview
Tariff Welfare Effects: Consumer Surplus and Producer Surplus
Tariff Welfare Effects: Small-Nation Model
Tariff Welfare Effects: Large-Nation Model
Donald Trump’s Border Tax: How to Pay for the Wall
The Optimal Tariff and Retaliation
Examples of U.S. Tariffs
Obama’s Tariffs on Chinese Tires
Should Footwear Tariffs Be Given the Boot?
Could a Higher Tariff Put a Dent in the Federal Debt?
How a Tariff Burdens Exporters
Tariffs and the Poor: Regressive Tariffs
Arguments for Trade Restrictions
Job Protection
Protection against Cheap Foreign Labor
Fairness in Trade: A Level Playing Field
Maintenance of the Domestic Standard of Living
Equalization of Production Costs
Infant-Industry Argument
Noneconomic Arguments
Would a Tariff Wall Really Protect U.S. Jobs?
Petition of the Candle Makers
The Political Economy of Protectionism
A Supply and Demand View of Protectionism
Summary
Key Concepts and Terms
Study Questions
CHAPTER 5: Nontariff Trade Barriers
Absolute Import Quota
Trade and Welfare Effects
Allocating Quota Licenses
Quotas versus Tariffs
Tariff-Rate Quota: A Two-Tier Tariff
Tariff-Rate Quota Bittersweet for Sugar Consumers
Export Quotas
Japanese Auto Restraints Put Brakes on U.S. Motorists
Domestic Content Requirements
How American Is Your Car?
Subsidies
Domestic Production Subsidy
Export Subsidy
Dumping
Forms of Dumping
International Price Discrimination
Avoiding Antidumping Duties: U.S.–Mexico Sugar Agreement
Antidumping Regulations
Whirlpool Agitates for Antidumping Tariffs on Clothes Washers
Vaughan-Bassett Furniture Company: Furniture Dumping from China
Is Antidumping Law Unfair?
Should Average Variable Cost Be the Yardstick for Defining Dumping?
Should Antidumping Law Reflect Currency Fluctuations?
Are Antidumping Duties Overused?
Other Nontariff Trade Barriers
Government Procurement Policies: “Buy American”
U.S. Fiscal Stimulus and Buy American Legislation
Social Regulations
CAFE Standards
Europe Has a Cow over Hormone-Treated U.S. Beef
Sea Transport and Freight Regulations
Summary
Key Concepts and Terms
Study Questions
CHAPTER 6: Trade Regulations and Industrial Policies
U.S. Tariff Policies Before 1930
Smoot–Hawley Act
Reciprocal Trade Agreements Act
General Agreement on Tariffs and Trade
Trade without Discrimination
Promoting Freer Trade
Predictability: Through Binding and Transparency
Multilateral Trade Negotiations
Avoiding Trade Barriers during the Great Recession
World Trade Organization
Settling Trade Disputes
Does the WTO Reduce National Sovereignty?
Does the WTO Harm the Environment?
Harming the Environment
Improving the Environment
WTO Rules against China’s Hoarding of Rare Earth Metals
Future of the World Trade Organization
Trade Promotion Authority (Fast Track Authority)
Safeguards (The Escape Clause): Emergency Protection from Imports
U.S. Safeguards Limit Surging Imports of Textiles from China
Countervailing Duties: Protection against Foreign Export Subsidies
Countervailing Duties: Trade Disputes between Canada and the United States
Would a Carbon Tariff Help Solve the Climate Problem?
Antidumping Duties: Protection against Foreign Dumping
Remedies against Dumped and Subsidized Imports
U.S. Steel Companies Lose an Unfair Trade Case and Still Win
Section 301: Protection against Unfair Trading Practices
Protection of Intellectual Property Rights
China’s Piracy of Software
Trade Adjustment Assistance
Trade Adjustment Assistance for Workers, Firms, Farmers, and Fishermen
Is Trade Adjustment Assistance Necessary?
United States Lifts Its Restrictions on Oil Exports
Industrial Policies of the United States
The Export-Import Bank
U.S. Airlines and Boeing Spar over Export-Import Bank Credit
U.S. Solar Industry Dims as China’s Industrial Policy Lights Up
Carrier Inc. Agrees to Keep Jobs in Indiana
Strategic Trade Policy
Economic Sanctions
Factors Influencing the Success of Sanctions
Sanctions and Nuclear Weapons: Iran and North Korea
Russia Hit by Sanctions over Ukraine
Summary
Key Concepts and Terms
Study Questions
CHAPTER 7: Trade Policies for the Developing Nations
Developing Nation Trade Characteristics
Tensions between Developing Nations and Advanced Nations
Trade Problems of the Developing Nations
Unstable Export Markets
Falling Commodity Prices Threaten Growth of Exporting Nations
Worsening Terms of Trade
Does Foreign Direct Investment Hinder or Help Economic Development?
Limited Market Access
Agricultural Export Subsidies of Advanced Nations
Bangladesh’s Sweatshop Reputation
Stabilizing Primary-Product Prices
Production and Export Controls
Buffer Stocks
Multilateral Contracts
Does the Fair Trade Movement Help Poor Coffee Farmers?
The OPEC Oil Cartel
Maximizing Cartel Profits
Declining Oil Prices Test OPEC’s Unity
OPEC as a Cartel
Aiding the Developing Nations
The World Bank
International Monetary Fund
Generalized System of Preferences
Does Aid Promote Growth of Developing Nations?
Economic Growth Strategies: Import Substitution versus Export-Led Growth
Import Substitution
Import Substitution Laws Backfire on Brazil
Export-Led Growth
Is Economic Growth Good for the Poor?
Can All Developing Nations Achieve Export-Led Growth?
East Asian Economies
Flying Geese Pattern of Growth
Is State Capitalism Winning?
China’s Great Leap Forward
Challenges and Concerns for China’s Economy
China’s Export Boom Comes at a Cost: How to Make Factories Play Fair
India: Breaking Out of the Third World
Summary
Key Concepts and Terms
Study Questions
CHAPTER 8: Regional Trading Arrangements
Regional Integration versus Multilateralism
Types of Regional Trading Arrangements
Impetus for Regionalism
Effects of a Regional Trading Arrangement
Static Effects
Dynamic Effects
The European Union
Pursuing Economic Integration
Agricultural Policy
Is the European Union Really a Common Market?
Britain Announces Withdrawal from the European Union (Brexit)
Economic Costs and Benefits of a Common Currency: The European Monetary Union
Optimal Currency Area
European Monetary “Disunion”
Eurozone’s Problems and Challenges
Greece and the Eurozone
Deflation and the Eurozone
North American Free Trade Agreement
NAFTA’s Benefits and Costs for Mexico and Canada
NAFTA’s Benefits and Costs for the United States
Modernizing NAFTA
Free Trade Agreements Bolster Mexico’s Competitiveness
U.S.–Mexico Trucking Dispute
U.S.–Mexico Tomato Dispute
Is NAFTA an Optimal Currency Area?
A Trans-Pacific Partnership?
A U.S.–China Free Trade Agreement?
Summary
Key Concepts and Terms
Study Questions
CHAPTER 9: International Factor Movements and Multinational Enterprises
The Multinational Enterprise
Motives for Foreign Direct Investment
Demand Factors
Cost Factors
Supplying Products to Foreign Buyers: Whether to Produce Domestically or Abroad
Direct Exporting versus Foreign Direct Investment/Licensing
Foreign Direct Investment versus Licensing
Country Risk Analysis
Do U.S. Multinationals Exploit Foreign Workers?
International Trade Theory and Multinational Enterprise
Foreign Auto Assembly Plants in the United States
International Joint Ventures
Welfare Effects
Multinational Enterprises as a Source of Conflict
Employment
Caterpillar Bulldozes Canadian Locomotive Workers
Technology Transfer
National Sovereignty
Balance-of-Payments
Transfer Pricing
The Tax Cuts and Jobs Act of 2017: Apple Plans to Build a New U.S. Campus
International Labor Mobility: Migration
The Effects of Migration
Immigration as an Issue
Does Canada’s Immigration Policy Provide a Model for the United States?
Does U.S. Immigration Policy Harm Domestic Workers?
Summary
Key Concepts and Terms
Study Questions
CHAPTER 10: The Balance-of-Payments
Double Entry Accounting
Balance-of-Payments Structure
Current Account
International Payments Process
Capital and Financial Account
Special Drawing Rights
Statistical Discrepancy: Errors and Omissions
U.S. Balance-of-Payments
What Does a Current Account Deficit (Surplus) Mean?
Net Foreign Investment and the Current Account Balance
Impact of Capital Flows on the Current Account
Is Trump’s Trade Doctrine Misguided?
The iPhone’s Complex Supply Chain Depicts Limitations of Trade Statistics
Is a Current Account Deficit a Problem?
Business Cycles, Economic Growth, and the Current Account
How the United States Has Borrowed at Very Low Cost
Do Current Account Deficits Cost Americans Jobs?
Can the United States Continue to Run Current Account Deficits Indefinitely?
Balance of International Indebtedness
United States as a Debtor Nation
Global Imbalances
The Dollar as the World’s Reserve Currency
Benefits to the United States
Will the Special Drawing Right or the Yuan Become a Reserve Currency?
Will Cryptocurrencies Lower the Dollar’s Status as a World Reserve Currency?
Summary
Key Concepts and Terms
Study Questions
CHAPTER 11: Foreign Exchange
Foreign Exchange Market
Foreign Currency Trading Becomes Automated
Types of Foreign Exchange Transactions
Interbank Trading
Reading Foreign Exchange Quotations
Yen Depreciation Drives Toyota Profits Upward
Forward and Futures Markets
Foreign Currency Options
Exchange Rate Determination
Demand for Foreign Exchange
Supply of Foreign Exchange
Equilibrium Rate of Exchange
Indexes of the Foreign Exchange Value of the Dollar: Nominal and Real Exchange Rates
Arbitrage
The Forward Market
The Forward Rate
Relation between the Forward Rate and the Spot Rate
Managing Your Foreign Exchange Risk: Forward Foreign Exchange Contract
Case 1
Case 2
How Markel, Volkswagen, and Nintendo Manage Foreign Exchange Risk
Does Foreign Currency Hedging Pay Off?
Currency Risk and the Hazards of Investing Abroad
Interest Arbitrage, Currency Risk, and Hedging
Uncovered Interest Arbitrage
Covered Interest Arbitrage (Reducing Currency Risk)
Foreign Exchange Market Speculation
Long and Short Positions
Andy Krieger Shorts the New Zealand Dollar
George Soros Shorts the Pound and Yen
People’s Bank of China Widens Trading Band to Punish Currency Speculators
How to Play the Falling (Rising) Dollar
Stabilizing and Destabilizing Speculation
Foreign Exchange Trading as a Career
Foreign Exchange Traders Hired by Commercial Banks, Companies, and Central Banks
Do You Really Want to Trade Currencies?
Money Managers Scramble to Pull Off Currency Carry Trades
Summary
Key Concepts and Terms
Study Questions
CHAPTER 12: Exchange Rate Determination
What Determines Exchange Rates?
Determining Long-Run Exchange Rates
Relative Price Levels
Relative Productivity Levels
Preferences for Domestic or Foreign Goods
Trade Barriers
Inflation Rates, Purchasing Power Parity and Long-Run Exchange Rates
Law of One Price
Burgeromics: The “Big Mac” Index and the Law of One Price
Banks Found Guilty of Foreign Exchange Market Rigging
Purchasing-Power-Parity
Determining Short-Run Exchange Rates: The Asset Market Approach
Relative Levels of Interest Rates
Expected Change in the Exchange Rate
Diversification, Safe Havens, and Investment Flows
International Comparisons of GDP: Purchasing Power Parity
Exchange Rate Overshooting
Forecasting Foreign Exchange Rates
Judgmental Forecasts
Technical Forecasts
Comercial Mexicana Gets Burned by Speculation
Fundamental Analysis
Exchange Rate Misalignment
Summary
Key Concepts and Terms
Study Questions
CHAPTER 13: Exchange Rate Adjustments and the Balance-of-Payments
Effects of Exchange Rate Changes on Costs and Prices
Case 1: No Foreign Sourcing—All Costs Are Denominated in Dollars
Case 2: Foreign Sourcing—Some Costs Denominated in Dollars and Some Costs Denominated in Francs
Cost-Cutting Strategies of Manufacturers in Response to Currency Appreciation
Appreciation of the Yen: Japanese Manufacturers
Appreciation of the Dollar: U.S. Manufacturers
Japanese Firms Send Work Abroad as Rising Yen Makes Their Products Less Competitive
Will Currency Depreciation Reduce a Trade Deficit? The Elasticity Approach
Case 1: Improved Trade Balance
Case 2: Worsened Trade Balance
J-Curve Effect: Time Path of Depreciation
Exchange Rate Pass-Through
Partial Exchange Rate Pass-Through
Does Currency Depreciation Stimulate Exports?
The Absorption Approach to Currency Depreciation
The Monetary Approach to Currency Depreciation
Summary
Key Concepts and Terms
Study Questions
CHAPTER 14: Exchange Rate Systems and Currency Crises
Exchange Rate Practices
Choosing an Exchange Rate System: Constraints Imposed by Free Capital Flows
Fixed Exchange Rate System
Use of Fixed Exchange Rates
Par Value and Official Exchange Rate
Russia’s Central Bank Fails to Offset the Ruble’s Collapse
Exchange Rate Stabilization
Devaluation and Revaluation
Bretton Woods System of Fixed Exchange Rates
Floating Exchange Rates
Achieving Market Equilibrium
Trade Restrictions, Jobs, and Floating Exchange Rates
Arguments for and against Floating Rates
Managed Floating Rates
Managed Floating Rates in the Short Run and Long Run
Exchange Rate Stabilization and Monetary Policy
Is Exchange Rate Stabilization Effective?
The Crawling Peg
Currency Manipulation and Currency Wars
Is China a Currency Manipulator?
Currency Crises
The Global Financial Crisis of 2007–2009
Sources of Currency Crises
Speculators Attack East Asian Currencies
Capital Controls
Should Foreign Exchange Transactions Be Taxed?
Increasing the Credibility of Fixed Exchange Rates
Currency Board
For Argentina, No Panacea in a Currency Board
Swiss Franc Soars after Exchange Rate Anchor Scrapped
Dollarization
Summary
Key Concepts and Terms
Study Questions
CHAPTER 15: Macroeconomic Policy in an Open Economy
Economic Objectives of Nations
Policy Instruments
Aggregate Demand and Aggregate Supply: A Brief Review
Monetary and Fiscal Policies in a Closed Economy
Monetary and Fiscal Policies in an Open Economy
Effect of Fiscal and Monetary Policies under Fixed Exchange Rates
Effect of Fiscal and Monetary Policies under Floating Exchange Rates
Monetary and Fiscal Policies Respond to Financial Turmoil in the Economy
Macroeconomic Stability and the Current Account: Policy Agreement versus Policy Conflict
Inflation with Unemployment
International Economic Policy Coordination
Policy Coordination in Theory
Does Policy Coordination Work?
Does Crowding Occur in an Open Economy?
Summary
Key Concepts and Terms
Study Questions
Glossary
Index