Introduction: Life in an international economy -- Why do nations trade? : some early answers -- Why do nations trade? : some later answers -- Trade and the role of factor endowments -- Scale, competition and trade -- The theory of protection tariffs and other barriers to trade -- Arguments for protection and the political economy of trade policy -- International mobility of labor and capital -- Regional blocks : preferential trade liberalization -- Commercial policy and the WTO -- Trade and growth -- The balance of payments and the exchange rate -- Fundamentals of exchange rate systems -- An introduction to modeling the open economy -- Extensions of the basic open-economy model : policy effectiveness and the large open economy -- International capital markets -- Modeling international capital markets -- Policy under fixed exchange rates -- Policy under flexible exchange rates and extensions of the Mundell-Fleming model -- Perfectly flexible prices and exchange rate dynamics -- The international monetary system : a brief history -- European monetary integration -- International financial crises.