Ch. 1: The International Economy and Globalization -- Globalization of Economic Activity -- Waves of Globalization -- First Wave of Globalization: 1870-1914 -- Second Wave of Globalization: 1945-1980 -- Kodak Teeters on the Brink -- Latest Wave of Globalization -- The United States as an Open Economy -- Trade Patterns -- Labor and Capital -- Why is Globalization Important? -- Diesel Engines and Gas Turbines as Movers of Globalization -- Globalization: Increased Competition From Abroad -- Bicycle Imports Force Schwinn to Downshift -- Dell Sells Factories in Effort to Slash Costs -- Common Fallacies of International Trade -- Does Free Trade Apply to Cigarettes? -- Is International Trade an Opportunity or A Threat to Workers? -- Is the United States Losing Its Innovation Edge? -- Backlash Against Globalization -- The Plan of this Text -- Summary -- Key Concepts and Terms -- Study Questions. Ch. 2 Foundations of Modern Trade Theory: Comparative Advantage -- Historical Development of Modern Trade Theory -- The Mercantilists -- Why Nations Trade: Absolute Advantage -- David Ricardo -- Why Nations Trade: Comparative Advantage -- Production Possibilities Schedules -- Trading Under Constant-Cost Conditions -- Basis for Trade and Direction of Trade -- Production Gains from Specialization -- Consumption Gains from Trade -- Distributing the Gains from Trade -- Equilibrium Terms of Trade -- Babe Ruth and the Principle of Comparative Advantage -- Terms-of-Trade Estimates -- Dynamic Gains from Trade -- How Global Competition Led to Productivity Gains for U.S. Iron Ore Workers -- Changing Comparative Advantage -- Trading Under Increasing-Cost Conditions -- Increasing-Cost Trading Case -- Partial Specialization -- The Impact of Trade on Jobs -- Comparative Advantage Extended To Many Products and Countries -- More Than Two Products -- More Than Two Countries -- Exit Barriers -- Empirical Evidence on Comparative Advantage -- Comparative Advantage, Free Trade, and Outsourcing -- Advantages and Disadvantages of Outsourcing -- The iPhone Economy and Production Outsourcing -- Outsourcing and the U.S. Automobile Industry -- Outsourcing of Boeing 787 Dreamliner Backfires -- Summary -- Key Concepts and Terms -- Study Questions -- Exploring Further. Ch. 3 Sources of Comparative Advantage -- Factor Endowments as a Source of Comparative Advantage -- The Factor-Endowment Theory -- Visualizing the Factor-Endowment Theory -- Applying the Factor-Endowment Theory to U.S.-China Trade -- Wage Increases and Chinese Trade -- Factor-Price Equalization -- Globalization Drives Changes for U.S. Automakers -- Who Gains and Loses from Trade? The Stolper-Samuelson Theorem -- Is International Trade a Substitute for Migration? -- Specific Factors: Trade and the Distribution of Income in the Short Run -- Does Trade Make the Poor Even Poorer? -- Skill as a Source of Comparative Advantage -- Economies of Scale and Comparative Advantage -- Internal Economies of Scale -- External Economies of Scale -- Overlapping Demands as a Basis for Trade -- Does a "Flat World" Make Ricardo Wrong? -- Intra-Industry Trade -- Technology as a Source of Comparative Advantage: The Product Cycle Theory -- Radios, Pocket Calculators, and the International Product Cycle -- Dynamic Comparative Advantage: Industrial Policy -- WTO Rules that Illegal Government Subsidies Support Boeing and Airbus -- Government Regulatory Policies and Comparative Advantage -- Do Labor Unions Stifle Competitiveness? -- Transportation Costs and Comparative Advantage -- Trade Effects -- Falling Transportation Costs Foster Trade Boom -- Summary -- Key Concepts and Terms -- Study Questions -- Exploring Further. Ch. 5 Nontariff Trade Barriers -- Absolute Import Quota -- Trade and Welfare Effects -- Allocating Quota Licenses -- Quotas versus Tariffs -- Tariff-Rate Quota: A Two-Tier Tariff -- Sugar Tarir-Rate Quota Bittersweet for Consumers -- Export Quotas -- Japanese Auto Restraints Put Brakes on U.S. Motorists -- Domestic Content Requirements -- How "Foreign" Is Your Car? -- Subsidies -- Domestic Production Subsidy -- Export Subsidy -- Dumping -- Forms of Dumping -- International Price Discrimination -- Swimming Upstream: The Case of Vietnamese Catfish -- Antidumping Regulations -- Smith Corona Finds Antidumping Victories are Hollow -- Canadians Press Washington Apple Producers for Level Playing Field -- Is Antidumping Law Unfair? -- Should Average Variable Cost Be the Yardstick for Defining Dumping? -- Should Antidumping Law Reflect Currency Fluctuations? -- Are Antidumping Duties Overused? -- Other Nontariff Trade Barriers -- Government Procurement Policies -- U.S. Fiscal Stimulus and Buy-American Legislation -- Social Regulations -- Sea Transport and Freight Regulations -- Summary -- Key Concepts and Terms -- Study Questions. Ch. 6 Trade Regulations and Industrial Policies -- U.S. Tariff Policies Before 1930 -- Smoot-Hawley Act -- Reciprocal Trade Agreements Act -- General Agreement on Tariffs and Trade -- Trade without Discrimination -- Promoting Freer Trade -- Predictability through Binding and Transparency -- Multilateral Trade Negotiations -- World Trade Organization -- Settling Trade Disputes -- Does the WTO Reduce National Sovereignty? -- Should Retaliatory Tams Be Used for WTO Enforcement? -- Does the WTO Harm the Environment? -- Trade Promotion Authority (Fast-Track Authority) -- Safeguards (The Escape Clause): Emergency Protection From Imports -- U.S. Safeguards Limit Surging Imports of Textiles from China -- Countervailing Duties: Protection Against Foreign Export Subsidies -- Lumber Duties Hammer Home Buyers -- Antidumping Duties: Protection Against Foreign Dumping -- Remedies against Dumped and Subsidized Imports -- U.S. Steel Companies Lose an Unfair Trade Case and Still Win -- Section 301: Protection Against Unfair Trading Practices -- Protection Of Intellectual Property Rights -- The Globalization of Ideas and Intellectual Property Rights -- Microsoft Scorns China's Piracy of Software -- Trade Adjustment Assistance -- Industrial Policies of the United States -- U.S. Airlines and Boeing Spar Over Export-Import Bank Credit -- Industrial Policies of Japan -- Strategic Trade Policy -- Economic Sanctions -- U.S. Solar Industry Dims as China's Industrial Policy Lights Up -- Factors Influencing the Success of Sanctions -- Economic Sanctions and Weapons of Mass Destruction: North Korea and Iran -- Summary -- Key Concepts and Terms -- Study Questions -- Exploring Further. Ch. 7 Trade Policies for the Developing Nations -- Developing-Nation Trade Characteristics -- Tensions Between Developing Nations and Advanced Nations -- Trade Problems of the Developing Nations -- Unstable Export Markets -- Falling Commodity Prices Threaten Growth of Exporting Nations -- Worsening Terms of Trade -- Limited Market Access -- Are International Labor Standards Needed to Prevent Social Dumping? -- Agricultural Export Subsidies of Advanced Nations -- Stabilizing Primary-Product Prices -- Production and Export Controls -- Buffer Stocks -- Multilateral Contracts -- Does the Fair-Trade Movement Help Poor Coffee Farmers? -- The Opec Oil Cartel -- Maximizing Cartel Profits -- OPEC as a Cartel -- Aiding the Developing Nations -- The World Bank -- Does Foreign Direct Investment Hinder or Help Economic Development? -- International Monetary Fund -- Generalized System of Preferences -- Does Aid Promote Growth of Developing Nations? -- How to Bring Developing Nations in from the Cold -- Economic Growth Strategies: Import Substitution Versus Export-Led Growth -- Import Substitution -- Import-Substitution Laws Backfire on Brazil -- Export-Led Growth -- Is Economic Growth Good for the Poor? -- Can All Developing Nations Achieve Export-Led Growth? -- East Asian Economies -- Will the Emerging Economies Soon Outstrip the Rich Ones? -- Flying-Geese Pattern of Growth -- China's Great Leap Forward -- China's Export Boom Comes at a Cost: How to Make Factories Play Fair -- Ind