Thought-provoking and clearly explained, the new edition provides students of international economics and international business with a rigorous explanation of global economic theory and policy, both current trends and historic developments. It explores key models through case studies and review questions, enabling students to challenge the reporting of economic events by press and government alike.

Split into 2 parts – International Trade and International Finance – the text explains conceptual building blocks before applying them to current events and controversies. Key issues discussed include:

the influence of transportation costs
economies of scale and the new economic geography
the evaluation of preferential trade agreements
european Economic and Monetary Union
the integration of international financial markets
international financial crises, China and other emerging economies.

Fully illustrated with tables and figures to allow students to visualise the issues discussed, the lively prose gives this book a refreshing approach. An accompanying website also provides context and coverage of the international financial crisis of October 2008, including the so-called ‘credit crunch’ and the collapse of some banking institutions.

About the Author

Theo S. Eicher is Professor and Robert R. Richards Distinguished Scholar in the Department of Economics at the University of Washington, Seattle, USA. He is also an affiliate professor at Ludwig-Maximilians-Universit�t, Munich, Germany.

John Mutti is the Sidney Meyer Professor International Economics at Grinnell College, Iowa, USA. His experience in government includes the US Treasury Office of International Taxation and the President’s Council of Economic Advisers. His research focuses on international trade, taxation, and foreign direct investment.

Michelle Turnovsky is a Senior Lecturer in the Department of Economics, at the University of Washington, Seattle, USA.

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