Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

pug21774_fm_i-xxviii.indd International Economics Sixteenth Edition pug21774_fm_i-xxviii.indd ipug21774_fm_i-xxviii.indd i 12/8/14 8:59 PM12/8/14 8:59 PM Final PDF to printer ESSENTIALS OF ECONOMICS...

1 answer below »

pug21774_fm_i-xxviii.indd
International
Economics
Sixteenth Edition
pug21774_fm_i-xxviii.indd ipug21774_fm_i-xxviii.indd i 12/8/14 8:59 PM12/8/14 8:59 PM
Final PDF to printe
ESSENTIALS OF ECONOMICS
Brue, McConnell, and Flynn
Essentials of Economics
Third Edition
Mandel
Economics: The Basics
Second Edition
Schille
Essentials of Economics
Ninth Edition
PRINCIPLES OF ECONOMICS
Colande
Economics, Microeconomics, and
Macroeconomics
Ninth Edition
Frank and Bernanke
Principles of Economics, Principles
of Microeconomics, and Principles of
Macroeconomics
Fifth Edition
Frank and Bernanke
Brief Editions: Principles of Economics,
Principles of Microeconomics, and
Principles of Macroeconomics
Second Edition
Karlan and Morduch
Economics, Microeconomics, and
Macroeconomics
First Edition
McConnell, Brue, and Flynn
Economics, Microeconomics, and
Macroeconomics
Twentieth Edition
McConnell, Brue, and Flynn
Brief Editions: Economics,
Microeconomics, and Macroeconomics
Second Edition
Mille
Principles of Microeconomics
First Edition
Samuelson and Nordhaus
Economics, Microeconomics, and
Macroeconomics
Nineteenth Edition
Schille
The Economy Today, The Micro
Economy Today, and The Macro
Economy Today
Thirteenth Edition
Slavin
Economics, Microeconomics, and
Macroeconomics
Eleventh Edition
ECONOMICS OF SOCIAL ISSUES
Guell
Issues in Economics Today
Seventh Edition
Sharp, Register, and Grimes
Economics of Social Issues
Twentieth Edition
ECONOMETRICS
Gujarati and Porte
Basic Econometrics
Fifth Edition
Gujarati and Porte
Essentials of Econometrics
Fourth Edition
Hilmer and Hilme
Practical Econometrics
First Edition
MANAGERIAL ECONOMICS
Baye and Prince
Managerial Economics and Business
Strategy
Eighth Edition
Brickley, Smith, and Zimmerman
Managerial Economics and
Organizational Architecture
Sixth Edition
Thomas and Maurice
Managerial Economics
Eleventh Edition
INTERMEDIATE ECONOMICS
Bernheim and Whinston
Microeconomics
Second Edition
Dornbusch, Fischer, and Startz
Macroeconomics
Twelfth Edition
Frank
Microeconomics and Behavio
Ninth Edition
ADVANCED ECONOMICS
Rome
Advanced Macroeconomics
Fourth Edition
MONEY AND BANKING
Cecchetti and Schoenholtz
Money, Banking, and Financial
Markets
Fourth Edition
URBAN ECONOMICS
O’Sullivan
U
an Economics
Eighth Edition
LABOR ECONOMICS
Borjas
Labor Economics
Seventh Edition
McConnell, Brue, and Macpherson
Contemporary Labor Economics
Tenth Edition
PUBLIC FINANCE
Rosen and Gaye
Public Finance
Tenth Edition
Seidman
Public Finance
First Edition
ENVIRONMENTAL ECONOMICS
Field and Field
Environmental Economics: An
Introduction
Sixth Edition
INTERNATIONAL ECONOMICS
Appleyard and Field
International Economics
Eighth Edition
King and King
International Economics, Globalization,
and Policy: A Reade
Fifth Edition
Pugel
International Economics
Sixteenth Edition
The McGraw-Hill Series in Economics
pug21774_fm_i-xxviii.indd iipug21774_fm_i-xxviii.indd ii 12/8/14 8:59 PM12/8/14 8:59 PM
Final PDF to printe
International
Economics
Sixteenth Edition
Thomas A. Pugel
New York University
pug21774_fm_i-xxviii.indd iiipug21774_fm_i-xxviii.indd iii 12/8/14 8:59 PM12/8/14 8:59 PM
Final PDF to printe
INTERNATIONAL ECONOMICS: SIXTEENTH EDITION
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY XXXXXXXXXXCopyright © 2016 by McGraw-Hill
Education. All rights reserved. Printed in the United States of America. Previous editions © 2012, 2009, and
2007. No part of this publication may be reproduced or distributed in any form or by any means, or stored in
a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not
limited to, in any network or other electronic storage or transmission, or
oadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers outside the
United States.
This book is printed on acid-free paper.
XXXXXXXXXXDOC/DOC XXXXXXXXXX
ISBN XXXXXXXXXX
MHID XXXXXXXXXX
Senior Vice President, Products & Markets: Kurt L. Strand
Vice President, General Manager, Products & Markets: Marty Lange
Vice President, Content Design & Delivery: Kimberly Meriwether David
Managing Director: James Heine
Lead Product Developer: Michele Janicek
Senior Product Developer: Christina Kouvelis
Director of Marketing: Lynn Breithaupt
Director, Content Design & Delivery: Linda Avenarius
Senior Content Project Manager: Lisa Bruflodt
Buyer: Laura M. Fuller
Cover Image: Design Pics/Ryan Briscall
Compositor: Laserwords Private Limited
Printer: R. R. Donnelley
All credits appearing on page or at the end of the book are considered to be an extension of the copyright page.
Li
ary of Congress Cataloging-in-Publication Data
Pugel, Thomas A.
International economics/ Thomas A. Pugel.—Sixteenth edition.
pages cm
ISBN XXXXXXXXXXalk. paper)
1. Commercial policy. 2. Foreign exchange. I. Title.
HF1411.L XXXXXXXXXX
337—dc23
XXXXXXXXXX XXXXXXXXXX
The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does
not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not
guarantee the accuracy of the information presented at these sites.
www.mhhe.com
pug21774_fm_i-xxviii.indd ivpug21774_fm_i-xxviii.indd iv 12/9/14 6:49 PM12/9/14 6:49 PM
Final PDF to printe
In memory of my parents, Adele and Edmund, and my
parents-in-law, Vivian and Freeman, with my deepest
appreciation and gratitude for all that they did to benefit
the generations that follow.
pug21774_fm_i-xxviii.indd vpug21774_fm_i-xxviii.indd v 12/8/14 8:59 PM12/8/14 8:59 PM
Final PDF to printe
vi
About the Author
Thomas A. Pugel
Thomas A. Pugel is Professor of Economics and Global Business at
the Stern School of Business, New York University, and a Fellow of
the Teaching Excellence Program at the Stern School. His research
and publications focus on international industrial competition and
government policies toward international trade and industry. Professor
Pugel has been Visiting Professor at Aoyama Gakuin University in
Japan and a member of the U.S. faculty at the National Center for
Industrial Science and Technology Management Development in China.
He received the university-wide Distinguished Teaching Award at New
York University in 1991, and twice he was voted Professor of the Year
y the graduate students at the Stern School of Business. He studied economics as
an undergraduate at Michigan State University and earned a PhD in economics from
Harvard University.
pug21774_fm_i-xxviii.indd vipug21774_fm_i-xxviii.indd vi 12/8/14 8:59 PM12/8/14 8:59 PM
Final PDF to printe
vii
Preface
International economics combines the excitement of world events and the incisiveness
of economic analysis. We are now deeply into the second great wave of globalization,
in which product, capital, and labor markets are becoming more integrated across
countries. This second wave, which began in about 1950 and picked up steam in the
1980s, has now lasted longer than the first, which began in about 1870 and ended with
World War I (or perhaps with the onset of the Great Depression in 1930).
As indicators of the cu
ent process of globalization, we see that international
trade, foreign direct investment, cross-border lending, and international portfolio
investments have been growing faster than world production. Information, data, and
umors now spread around the world instantly through the Internet and other global
electronic media.
As the world becomes more integrated, countries become more interdependent.
Increasingly, events and policy changes in one country affect many other countries.
Also increasingly, companies make decisions about production and product develop-
ment based on global markets.
My goal in writing and revising this book is to provide the best blend of events
and analysis, so that the reader builds the abilities to understand global economic
developments and to evaluate proposals for changes in economic policies. The book
is informed by cu
ent events and by the latest in applied international research.
My job is to synthesize all of this to facilitate learning. The book
Combines rigorous economic analysis with attention to the issues of economic
policy that are alive and important today.
Is written to be concise and readable.
Uses economic terminology when it enhances the analysis but avoids jargon for
jargon’s sake.
I follow these principles when I teach international economics to undergraduates and
master’s degree students. I believe that the book benefits as I
ing into it what I learn
from the classroom.
THE SCHEME OF THE BOOK
The examples presented in Chapter 1 show that international economics is exciting
and sometimes controversial because there are both differences between countries and
interconnections among countries. Still, international economics is like other econom-
ics in that we will be examining the fundamental challenge of scarcity of resources—
how we can best use our scarce resources to create the most value and the most
enefits. We will be able to draw on many standard tools and concepts of economics,
such as supply and demand analysis, and extend their use to the international arena.
We begin our in-depth exploration of international economics with international
trade theory and policy. In Chapters 2–7 we look at why countries trade goods and
services. In Chapters 8–15 we examine what government policies toward trade would
ing benefits and to whom. This first half of the book might be called international
microeconomics.
pug21774_fm_i-xxviii.indd viipug21774_fm_i-xxviii.indd vii 12/8/14 8:59 PM12/8/14 8:59 PM
Final PDF to printe
viii Preface
Our basic theory of trade, presented in Chapter 2, says that trade usually results
from the interaction of competitive demand and supply. It shows how the gains that
trade
ings to some people and the losses it
ings to others can sum to overall
global and national gains from trade. Chapter 3 launches an exploration of what
lies behind the demand and supply curves and discovers the concept of comparative
advantage. Chapter 4 shows that countries have different comparative advantages for
the fundamental reason that people,
Answered Same Day Jul 09, 2022

Solution

Rochak answered on Jul 10 2022
87 Votes
Answer 2:
A country is not always better off running a cu
ent account surplus, than a cu
ent account deficit, this is said because yes it is true that running a cu
ent account surplus means that the company do not need to pay anything as they are exporting more goods than what they are importing.
But when looked at the other way round it may also mean the country is not getting imports which are increasing the domestic investment and consumption.
Also, a cu
ent account surplus implies that there is a higher inflow of the forex (foreign cu
ency) than the overall outflow. This increase in inflow helps with the increase in the country’s foreign exchange reserves which helps maintain external stability. This is the reason why most countries and economies look to make a cu
ent account surplus but because of the many factors which contribute to the surplus and the deficit it can be said that too...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here