Table of Contents Relevant Chapters

Peter Schmidt International Economics, 14/e Thomas Pugel, New York University Table of Contents – relevant chapters Chapter SUMMARIES

1 International Economics is Different Not discussed

PART ONE - The Theory of International Trade

2 The Basic Theory Using Demand and Supply (2.1) Four Questions about Trade (2.2) A Look Ahead (2.3) Demand and Supply (2.4) Two National Markets and the Opening of Trade

3 Why Everybody Trades: Comparative Advantage (3.1) Adam Smith‘s Theory of Absolute Advantage (3.2) Ricardo‘s Theory of Comparative Advantage (3.3) Ricardo‘s Constant Costs and the Production-Possibility Curve

4 Trade: Factor Availability and Factor Proportions are Key (4.1) Production with Increasing Marginal Costs (4.2) Community Indifference Curves (4.3) Production and Consumption Together (4.4) The Gains from Trade (4.5) Trade Affects Production and Consumption (4.6) What Determines the Trade Pattern? (4.7) The Heckscher-Ohlin Theory

5 Who Gains and Who Loses from Trade? (5.1) Who Gains and Who Loses Within a Country (5.2) Three Implications of the H-O Theory (5.3) Does Heckscher-Ohlin Explain Actual Trade Patterns? (5.4) What Are the Export-Oriented and Import-Competing Factors? (5.5) Do Factor Prices Equalize Internationally?

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PART TWO - Trade Policy

8 Analysis of a Tariff

International Institutions: GATT, WTO (p. 144 145), 3 major principles, Uruguay round (8.1) A Preview of Conclusions (8.2) The Effect of a Tariff on Domestic Producers (8.3) The Effect of a Tariff on Domestic Consumers (8.4) The Tariff as Government Revenue (8.5) The Net National Loss from a Tariff (8.6) The Terms-of-Trade Effect and a Nationally Optimal Tariff

9 Nontariff Barriers to Imports

International Institutions: GATT, WTO (p. 168-170), “Beyond tariffs” Doha round (9.1) Types of Nontariff Barriers to Imports (9.2) The Import Quota without the discussion of monopolies and also without “Large Country”. (9.3) Voluntary Export Restraints (VERs) (only basic idea) (9.4) Other Nontariff Barriers (9.5) How Big Are the Costs of Protection? (9.6) International Trade Disputes

12 Trade Blocs and Trade Blocks (12.1) Types of Economic Blocs (12.2) Is Trade Discrimination Good or Bad? (only basic idea – verbal) (12.3) The Basic Theory of Trade Blocs: Trade Creation and Trade Diversion (12.4) Other Possible Gains from a Trade Bloc (12.5) The EU Experience (12.6) North America Becomes a Bloc (12.7) Trade Blocs among Developing Countries (12.8) Trade Embargoes

Questions and Problems: Mankiw und aus Pugel: - bis Kapitel 5 die “Hausaufgaben” Fragen - Kapitel 8: 1,3,5,7 Kapitel 9: 1,3,5,7 keine „Questions“ aus Kapitel 12

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