International Economics

"International economics combines the excitement of world events and the incisiveness of economic analysis. We are in the second great wave of globalization, in which product, capital, and labor markets become more integrated across countries. This second wave, which began in about 1950 and picked up steam in the 1980s, has 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). In the process of globalization, international trade, foreign direct investment, cross-border lending, and international portfolio investments have grown faster than world production. In addition, information, data, and rumors now spread around the world instantly through the Internet and other global electronic media. As the world has become more integrated, countries have become more interdependent. Increasingly, events and policy changes in one country affect many other countries. Also increasingly, companies make decisions about production and product development based on global markets. It is important to recognize, however, that globalization is not inevitable. Since the 2007-2009 global financial and economic crisis, the process of globalization has slowed markedly. To some extent, we may be in a pause to allow regrouping of the economic forces driving globalization. For example, before the crisis, global financial flows may have overexpanded, so a retrenchment is healthy. Other forces resisting globalization are political, including rising nationalism. Are national well-being and globalization enemies? A key task of international economics is to examine the national interest within an internationally linked world. 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 current 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 bring into it what I learn from the classroom"--