1. Introduction: An overview of the world economy page 1-19 -- 2. Why countries trade page 20-39 -- 3. Comparative advantage and the production possibilities frontier page 40-65 -- 4. Factor endowments and the commodity composition of trade page 66-91 -- 5. Intra-industry trade page 92-115 -- 6. The firm in the world economy page 116-132 -- 7. International factor movements page 133-149 -- 8. Tarrifs page 150-174 -- 9. Nontariff distortions to trade page 175-202 -- 10. International trade policy page 203-228 -- 11. Regional economic arrangements page 229-252 -- 12. International trade and economic growth page 253-281 -- 13. National income accounting and the balance of payments page 282-306 -- 14. Exchange rates and their determination: A basic model page 307-347 -- 15. Money, interest rates, and the exchange rate page 348-374 -- 16. Open economic macroeconomics page 375-404 -- 17. Macroeconomic policy and floating exchange rates page 405-435 -- 18. Fixed exchange rates and currency unions page 436-467 -- 19. International monetary arrangements page 468-486 -- 20. Capital flows and the developing countries page 487-508