Solution Manual for International Economics 17th Edition

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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:

1. PART 1: International Trade Relations
2. CHAPTER 1: The International Economy and Globalization
3. Economic Interdependence: Federal Reserve Policy Incites Global Backlash
4. Globalization of Economic Activity
5. U.S. Apple Growers Not Overly Worried about Chinese Imports
6. Waves of Globalization
7. First Wave of Globalization: 1870–1914
8. Second Wave of Globalization: 1945–1980
9. Latest Wave of Globalization
10. Diesel Engines and Gas Turbines as Movers of Globalization
11. The United States as an Open Economy
12. Trade Patterns
13. Labor and Capital
14. Why Is Globalization Important?
15. Globalization and Competition
16. Globalization Forces Kodak to Reinvent Itself
17. Bicycle Imports Force Schwinn to Downshift
18. Element Electronics Survives by Moving TV ­Production to America
19. Common Fallacies of International Trade
20. Is the United States Losing Its Innovation Edge?
21. Is International Trade an Opportunity or a Threat to Workers?
22. Has Globalization Gone Too Far?
23. The Plan of This Text
24. Summary
25. Key Concepts and Terms
26. Study Questions
27. CHAPTER 2: Foundations of Modern Trade Theory: Comparative Advantage
28. Historical Development of Modern Trade Theory
29. The Mercantilists
30. Why Nations Trade: Absolute Advantage
31. Adam Smith and David Ricardo
32. Why Nations Trade: Comparative Advantage
33. Production Possibilities Frontiers
34. Trading under Constant-Cost Conditions
35. Basis for Trade and Direction of Trade
36. Production Gains from Specialization
37. Babe Ruth and the Principle of Comparative Advantage
38. Consumption Gains from Trade
39. Distributing the Gains from Trade
40. Equilibrium Terms of Trade
41. Terms of Trade Estimates
42. Dynamic Gains from Trade: Economic Growth
43. Changing Comparative Advantage
44. Natural Gas Boom Fuels Debate
45. Trading under Increasing-Cost Conditions
46. Increasing-Cost Trading Case
47. Partial Specialization
48. The Impact of Trade on Jobs
49. Wooster, Ohio Bears the Brunt of Globalization
50. Comparative Advantage Extended to Many Products and Countries
51. More Than Two Products
52. More Than Two Countries
53. Factor Mobility, Exit Barriers, and Trade
54. Empirical Evidence on Comparative Advantage
55. Can American Workers Compete with Low-Wage Workers Abroad?
56. The Case for Free Trade
57. Comparative Advantage and Global Supply Chains
58. Advantages and Disadvantages of Outsourcing
59. Outsourcing and the U.S. Automobile Industry
60. The iPhone Economy and Global Supply Chains
61. Outsourcing Backfires for Boeing 787 Dreamliner
62. Reshoring Production to the United States
63. Deindustrialization Redeploys Workers to Growing Service Sector
64. Summary
65. Key Concepts and Terms
66. Study Questions
67. CHAPTER 3: Sources of Comparative Advantage
68. Factor Endowments as a Source of Comparative Advantage
69. The Factor-Endowment Theory
70. Visualizing the Factor-Endowment Theory
71. Applying the Factor-Endowment Theory to U.S.–China Trade
72. Chinese Manufacturers Beset by Rising Wages and a Rising Yuan
73. Does Trade with China Take Away Blue-Collar American Jobs?
74. Factor-Price Equalization
75. Globalization Drives Changes for U.S. Automakers
76. Is International Trade a Substitute for Migration?
77. Specific-Factors Theory: Trade and the Distribution of Income
78. Does Trade Make the Poor Even Poorer?
79. Is International Trade Responsible for the Loss of ­American Manufacturing Jobs? How about Robots
80. Is the Factor-Endowment Theory a Good Predictor of Trade Patterns? The Leontief Paradox
81. Economies of Scale and Comparative Advantage
82. Internal Economies of Scale
83. External Economies of Scale
84. Does a “Flat World” Make Ricardo Wrong?
85. Overlapping Demands as a Basis for Trade
86. Intra-industry Trade
87. Technology as a Source of Comparative Advantage: The Product Cycle Theory
88. Radios, Pocket Calculators, and the International Product Cycle
89. Japan Fades in the Electronics Industry
90. Dynamic Comparative Advantage: Industrial Policy
91. World Trade Organization Rules That Illegal Government Subsidies Support Boeing and Airbus
92. Government Regulatory Policies and Comparative Advantage
93. Do Labor Unions Stifle Competitiveness?
94. Transportation Costs and Comparative Advantage
95. Trade Effects
96. Falling Transportation Costs Foster Trade
97. How Containers Revolutionized the World of Shipping
98. The Port of Prince Rupert: Shifting Competitiveness in Shipping Routes
99. Summary
100. Key Concepts and Terms
101. Study Questions
102. CHAPTER 4: Tariffs
103. The Tariff Concept
104. Types of Tariffs
105. Specific Tariff
106. Ad Valorem Tariff
107. Compound Tariff
108. Trade Protectionism Intensifies as Global Economy Falls into the Great Recession
109. Effective Rate of Protection
110. Tariff Escalation
111. Outsourcing and Offshore Assembly Provision
112. Dodging Import Tariffs: Tariff Avoidance and Tariff Evasion
113. Ford Strips Its Wagons to Avoid a High Tariff
114. Smuggled Steel Evades U.S. Tariffs
115. Postponing Import Tariffs
116. Gains from Eliminating Import Tariffs
117. Bonded Warehouse
118. Foreign-Trade Zone
119. FTZs Benefit Motor Vehicle Importers
120. Tariff Effects: An Overview
121. Tariff Welfare Effects: Consumer Surplus and ­Producer Surplus
122. Tariff Welfare Effects: Small-Nation Model
123. Tariff Welfare Effects: Large-Nation Model
124. Donald Trump’s Border Tax: How to Pay for the Wall
125. The Optimal Tariff and Retaliation
126. Examples of U.S. Tariffs
127. Obama’s Tariffs on Chinese Tires
128. Should Footwear Tariffs Be Given the Boot?
129. Could a Higher Tariff Put a Dent in the Federal Debt?
130. How a Tariff Burdens Exporters
131. Tariffs and the Poor: Regressive Tariffs
132. Arguments for Trade Restrictions
133. Job Protection
134. Protection against Cheap Foreign Labor
135. Fairness in Trade: A Level Playing Field
136. Maintenance of the Domestic Standard of Living
137. Equalization of Production Costs
138. Infant-Industry Argument
139. Noneconomic Arguments
140. Would a Tariff Wall Really Protect U.S. Jobs?
141. Petition of the Candle Makers
142. The Political Economy of Protectionism
143. A Supply and Demand View of Protectionism
144. Summary
145. Key Concepts and Terms
146. Study Questions
147. CHAPTER 5: Nontariff Trade Barriers
148. Absolute Import Quota
149. Trade and Welfare Effects
150. Allocating Quota Licenses
151. Quotas versus Tariffs
152. Tariff-Rate Quota: A Two-Tier Tariff
153. Tariff-Rate Quota Bittersweet for Sugar Consumers
154. Export Quotas
155. Japanese Auto Restraints Put Brakes on U.S. Motorists
156. Domestic Content Requirements
157. How American Is Your Car?
158. Subsidies
159. Domestic Production Subsidy
160. Export Subsidy
161. Dumping
162. Forms of Dumping
163. International Price Discrimination
164. Avoiding Antidumping Duties: U.S.–Mexico Sugar Agreement
165. Antidumping Regulations
166. Whirlpool Agitates for Antidumping Tariffs on Clothes Washers
167. Vaughan-Bassett Furniture Company: Furniture Dumping from China
168. Is Antidumping Law Unfair?
169. Should Average Variable Cost Be the Yardstick for Defining Dumping?
170. Should Antidumping Law Reflect Currency Fluctuations?
171. Are Antidumping Duties Overused?
172. Other Nontariff Trade Barriers
173. Government Procurement Policies: “Buy American”
174. U.S. Fiscal Stimulus and Buy American Legislation
175. Social Regulations
176. CAFE Standards
177. Europe Has a Cow over Hormone-Treated U.S. Beef
178. Sea Transport and Freight Regulations
179. Summary
180. Key Concepts and Terms
181. Study Questions
182. CHAPTER 6: Trade Regulations and Industrial Policies
183. U.S. Tariff Policies Before 1930
184. Smoot–Hawley Act
185. Reciprocal Trade Agreements Act
186. General Agreement on Tariffs and Trade
187. Trade without Discrimination
188. Promoting Freer Trade
189. Predictability: Through Binding and Transparency
190. Multilateral Trade Negotiations
191. Avoiding Trade Barriers during the Great Recession
192. World Trade Organization
193. Settling Trade Disputes
194. Does the WTO Reduce National Sovereignty?
195. Does the WTO Harm the Environment?
196. Harming the Environment
197. Improving the Environment
198. WTO Rules against China’s Hoarding of Rare Earth Metals
199. Future of the World Trade Organization
200. Trade Promotion Authority (Fast Track Authority)
201. Safeguards (The Escape Clause): Emergency ­Protection from Imports
202. U.S. Safeguards Limit Surging Imports of Textiles from China
203. Countervailing Duties: Protection against Foreign Export Subsidies
204. Countervailing Duties: Trade Disputes between Canada and the United States
205. Would a Carbon Tariff Help Solve the Climate Problem?
206. Antidumping Duties: Protection against Foreign Dumping
207. Remedies against Dumped and Subsidized Imports
208. U.S. Steel Companies Lose an Unfair Trade Case and Still Win
209. Section 301: Protection against Unfair Trading Practices
210. Protection of Intellectual Property Rights
211. China’s Piracy of Software
212. Trade Adjustment Assistance
213. Trade Adjustment Assistance for Workers, Firms, Farmers, and Fishermen
214. Is Trade Adjustment Assistance Necessary?
215. United States Lifts Its Restrictions on Oil Exports
216. Industrial Policies of the United States
217. The Export-Import Bank
218. U.S. Airlines and Boeing Spar over Export-Import Bank Credit
219. U.S. Solar Industry Dims as China’s Industrial Policy Lights Up
220. Carrier Inc. Agrees to Keep Jobs in Indiana
221. Strategic Trade Policy
222. Economic Sanctions
223. Factors Influencing the Success of Sanctions
224. Sanctions and Nuclear Weapons: Iran and North Korea
225. Russia Hit by Sanctions over Ukraine
226. Summary
227. Key Concepts and Terms
228. Study Questions
229. CHAPTER 7: Trade Policies for the Developing Nations
230. Developing Nation Trade Characteristics
231. Tensions between Developing Nations and Advanced Nations
232. Trade Problems of the Developing Nations
233. Unstable Export Markets
234. Falling Commodity Prices Threaten Growth of Exporting Nations
235. Worsening Terms of Trade
236. Does Foreign Direct Investment Hinder or Help Economic Development?
237. Limited Market Access
238. Agricultural Export Subsidies of Advanced Nations
239. Bangladesh’s Sweatshop Reputation
240. Stabilizing Primary-Product Prices
241. Production and Export Controls
242. Buffer Stocks
243. Multilateral Contracts
244. Does the Fair Trade Movement Help Poor Coffee Farmers?
245. The OPEC Oil Cartel
246. Maximizing Cartel Profits
247. Declining Oil Prices Test OPEC’s Unity
248. OPEC as a Cartel
249. Aiding the Developing Nations
250. The World Bank
251. International Monetary Fund
252. Generalized System of Preferences
253. Does Aid Promote Growth of Developing Nations?
254. Economic Growth Strategies: Import Substitution versus Export-Led Growth
255. Import Substitution
256. Import Substitution Laws Backfire on Brazil
257. Export-Led Growth
258. Is Economic Growth Good for the Poor?
259. Can All Developing Nations Achieve Export-Led Growth?
260. East Asian Economies
261. Flying Geese Pattern of Growth
262. Is State Capitalism Winning?
263. China’s Great Leap Forward
264. Challenges and Concerns for China’s Economy
265. China’s Export Boom Comes at a Cost: How to Make Factories Play Fair
266. India: Breaking Out of the Third World
267. Summary
268. Key Concepts and Terms
269. Study Questions
270. CHAPTER 8: Regional Trading Arrangements
271. Regional Integration versus Multilateralism
272. Types of Regional Trading Arrangements
273. Impetus for Regionalism
274. Effects of a Regional Trading Arrangement
275. Static Effects
276. Dynamic Effects
277. The European Union
278. Pursuing Economic Integration
279. Agricultural Policy
280. Is the European Union Really a Common Market?
281. Britain Announces Withdrawal from the European Union (Brexit)
282. Economic Costs and Benefits of a Common Currency: The European Monetary Union
283. Optimal Currency Area
284. European Monetary “Disunion”
285. Eurozone’s Problems and Challenges
286. Greece and the Eurozone
287. Deflation and the Eurozone
288. North American Free Trade Agreement
289. NAFTA’s Benefits and Costs for Mexico and Canada
290. NAFTA’s Benefits and Costs for the United States
291. Modernizing NAFTA
292. Free Trade Agreements Bolster Mexico’s Competitiveness
293. U.S.–Mexico Trucking Dispute
294. U.S.–Mexico Tomato Dispute
295. Is NAFTA an Optimal Currency Area?
296. A Trans-Pacific Partnership?
297. A U.S.–China Free Trade Agreement?
298. Summary
299. Key Concepts and Terms
300. Study Questions
301. CHAPTER 9: International Factor Movements and Multinational Enterprises
302. The Multinational Enterprise
303. Motives for Foreign Direct Investment
304. Demand Factors
305. Cost Factors
306. Supplying Products to Foreign Buyers: Whether to Produce Domestically or Abroad
307. Direct Exporting versus Foreign Direct Investment/Licensing
308. Foreign Direct Investment versus Licensing
309. Country Risk Analysis
310. Do U.S. Multinationals Exploit ­Foreign Workers?
311. International Trade Theory and Multinational Enterprise
312. Foreign Auto Assembly Plants in the United States
313. International Joint Ventures
314. Welfare Effects
315. Multinational Enterprises as a Source of Conflict
316. Employment
317. Caterpillar Bulldozes Canadian Locomotive Workers
318. Technology Transfer
319. National Sovereignty
320. Balance-of-Payments
321. Transfer Pricing
322. The Tax Cuts and Jobs Act of 2017: Apple Plans to Build a New U.S. Campus
323. International Labor Mobility: Migration
324. The Effects of Migration
325. Immigration as an Issue
326. Does Canada’s Immigration Policy Provide a Model for the United States?
327. Does U.S. Immigration Policy Harm Domestic Workers?
328. Summary
329. Key Concepts and Terms
330. Study Questions
331. CHAPTER 10: The Balance-of-Payments
332. Double Entry Accounting
333. Balance-of-Payments Structure
334. Current Account
335. International Payments Process
336. Capital and Financial Account
337. Special Drawing Rights
338. Statistical Discrepancy: Errors and Omissions
339. U.S. Balance-of-Payments
340. What Does a Current Account Deficit (Surplus) Mean?
341. Net Foreign Investment and the Current Account Balance
342. Impact of Capital Flows on the Current Account
343. Is Trump’s Trade Doctrine Misguided?
344. The iPhone’s Complex Supply Chain Depicts Limitations of Trade Statistics
345. Is a Current Account Deficit a Problem?
346. Business Cycles, Economic Growth, and the Current Account
347. How the United States Has Borrowed at Very Low Cost
348. Do Current Account Deficits Cost Americans Jobs?
349. Can the United States Continue to Run Current Account Deficits Indefinitely?
350. Balance of International Indebtedness
351. United States as a Debtor Nation
352. Global Imbalances
353. The Dollar as the World’s Reserve Currency
354. Benefits to the United States
355. Will the Special Drawing Right or the Yuan Become a Reserve Currency?
356. Will Cryptocurrencies Lower the Dollar’s Status as a World Reserve Currency?
357. Summary
358. Key Concepts and Terms
359. Study Questions
360. CHAPTER 11: Foreign Exchange
361. Foreign Exchange Market
362. Foreign Currency Trading Becomes Automated
363. Types of Foreign Exchange Transactions
364. Interbank Trading
365. Reading Foreign Exchange Quotations
366. Yen Depreciation Drives Toyota Profits Upward
367. Forward and Futures Markets
368. Foreign Currency Options
369. Exchange Rate Determination
370. Demand for Foreign Exchange
371. Supply of Foreign Exchange
372. Equilibrium Rate of Exchange
373. Indexes of the Foreign Exchange Value of the Dollar: Nominal and Real Exchange Rates
374. Arbitrage
375. The Forward Market
376. The Forward Rate
377. Relation between the Forward Rate and the Spot Rate
378. Managing Your Foreign Exchange Risk: Forward Foreign Exchange Contract
379. Case 1
380. Case 2
381. How Markel, Volkswagen, and Nintendo Manage Foreign Exchange Risk
382. Does Foreign Currency Hedging Pay Off?
383. Currency Risk and the Hazards of Investing Abroad
384. Interest Arbitrage, Currency Risk, and Hedging
385. Uncovered Interest Arbitrage
386. Covered Interest Arbitrage (Reducing Currency Risk)
387. Foreign Exchange Market Speculation
388. Long and Short Positions
389. Andy Krieger Shorts the New Zealand Dollar
390. George Soros Shorts the Pound and Yen
391. People’s Bank of China Widens Trading Band to Punish Currency Speculators
392. How to Play the Falling (Rising) Dollar
393. Stabilizing and Destabilizing Speculation
394. Foreign Exchange Trading as a Career
395. Foreign Exchange Traders Hired by Commercial Banks, Companies, and Central Banks
396. Do You Really Want to Trade Currencies?
397. Money Managers Scramble to Pull Off Currency Carry Trades
398. Summary
399. Key Concepts and Terms
400. Study Questions
401. CHAPTER 12: Exchange Rate Determination
402. What Determines Exchange Rates?
403. Determining Long-Run Exchange Rates
404. Relative Price Levels
405. Relative Productivity Levels
406. Preferences for Domestic or Foreign Goods
407. Trade Barriers
408. Inflation Rates, Purchasing Power Parity and Long-Run Exchange Rates
409. Law of One Price
410. Burgeromics: The “Big Mac” Index and the Law of One Price
411. Banks Found Guilty of Foreign Exchange Market Rigging
412. Purchasing-Power-Parity
413. Determining Short-Run Exchange Rates: The Asset Market Approach
414. Relative Levels of Interest Rates
415. Expected Change in the Exchange Rate
416. Diversification, Safe Havens, and Investment Flows
417. International Comparisons of GDP: ­Purchasing Power Parity
418. Exchange Rate Overshooting
419. Forecasting Foreign Exchange Rates
420. Judgmental Forecasts
421. Technical Forecasts
422. Comercial Mexicana Gets Burned by Speculation
423. Fundamental Analysis
424. Exchange Rate Misalignment
425. Summary
426. Key Concepts and Terms
427. Study Questions
428. CHAPTER 13: Exchange Rate Adjustments and the Balance-of-Payments
429. Effects of Exchange Rate Changes on Costs and Prices
430. Case 1: No Foreign Sourcing—All Costs Are ­Denominated in Dollars
431. Case 2: Foreign Sourcing—Some Costs Denominated in Dollars and Some Costs Denominated in Francs
432. Cost-Cutting Strategies of Manufacturers in Response to Currency Appreciation
433. Appreciation of the Yen: Japanese Manufacturers
434. Appreciation of the Dollar: U.S. Manufacturers
435. Japanese Firms Send Work Abroad as Rising Yen Makes Their Products Less Competitive
436. Will Currency Depreciation Reduce a Trade Deficit? The Elasticity Approach
437. Case 1: Improved Trade Balance
438. Case 2: Worsened Trade Balance
439. J-Curve Effect: Time Path of Depreciation
440. Exchange Rate Pass-Through
441. Partial Exchange Rate Pass-Through
442. Does Currency Depreciation ­Stimulate Exports?
443. The Absorption Approach to Currency Depreciation
444. The Monetary Approach to Currency Depreciation
445. Summary
446. Key Concepts and Terms
447. Study Questions
448. CHAPTER 14: Exchange Rate Systems and ­Currency Crises
449. Exchange Rate Practices
450. Choosing an Exchange Rate System: Constraints Imposed by Free Capital Flows
451. Fixed Exchange Rate System
452. Use of Fixed Exchange Rates
453. Par Value and Official Exchange Rate
454. Russia’s Central Bank Fails to Offset the Ruble’s Collapse
455. Exchange Rate Stabilization
456. Devaluation and Revaluation
457. Bretton Woods System of Fixed Exchange Rates
458. Floating Exchange Rates
459. Achieving Market Equilibrium
460. Trade Restrictions, Jobs, and Floating Exchange Rates
461. Arguments for and against Floating Rates
462. Managed Floating Rates
463. Managed Floating Rates in the Short Run and Long Run
464. Exchange Rate Stabilization and Monetary Policy
465. Is Exchange Rate Stabilization Effective?
466. The Crawling Peg
467. Currency Manipulation and Currency Wars
468. Is China a Currency Manipulator?
469. Currency Crises
470. The Global Financial Crisis of 2007–2009
471. Sources of Currency Crises
472. Speculators Attack East Asian Currencies
473. Capital Controls
474. Should Foreign Exchange Transactions Be Taxed?
475. Increasing the Credibility of Fixed Exchange Rates
476. Currency Board
477. For Argentina, No Panacea in a Currency Board
478. Swiss Franc Soars after Exchange Rate Anchor Scrapped
479. Dollarization
480. Summary
481. Key Concepts and Terms
482. Study Questions
483. CHAPTER 15: Macroeconomic Policy in an Open Economy
484. Economic Objectives of Nations
485. Policy Instruments
486. Aggregate Demand and Aggregate Supply: A Brief Review
487. Monetary and Fiscal Policies in a Closed Economy
488. Monetary and Fiscal Policies in an Open Economy
489. Effect of Fiscal and Monetary Policies under Fixed Exchange Rates
490. Effect of Fiscal and Monetary Policies under Floating Exchange Rates
491. Monetary and Fiscal Policies Respond to Financial Turmoil in the Economy
492. Macroeconomic Stability and the Current Account: Policy Agreement versus Policy Conflict
493. Inflation with Unemployment
494. International Economic Policy Coordination
495. Policy Coordination in Theory
496. Does Policy Coordination Work?
497. Does Crowding Occur in an Open Economy?
498. Summary
499. Key Concepts and Terms
500. Study Questions
501. Glossary
502. Index