UNIT I. INTRODUCTION TO THE GLOBAL ECONOMY 1. Understanding the Global Economy 2. Comparative Advantage-How Nations Can Gain from International Trade UNIT II. COMPARITIVE ADVANTAGE-HOW NATIONS CAN GAIN FROM INTERNATIONAL TRADE 3. Sources of Comparative Advantage 4. Regulating International Trade-Trade Policies and Their Effects 5. Regionalism and Multilateralism UNIT III. INTERNATIONAL FINANCE: ENDURING ISSUES 6. Balance of Payments and Foreign Exchange Markets 7. Exchange-Rate Systems, Past to Present 8. The Power of Arbitrage-Purchasing Power and Interest Rate Parities 9. Global Money and Banking-Where Central Banks Fit into the World Economy UNIT IV. CONTEMPORARY GLOBAL ECONOMICS ISSUES AND POLICIES 10. Can Globalization Lift All Boats? 11. Industrial Structure and Trade in the Global Economy-Businesses without Borders 12. The Public Sector in the Global Economy 13. Rules versus Discretion-Can Policymakers Stick to Their Promises? 14. Dealing with Financial Crises-Does the World Need a New International Financial Architecture Glossary Index.