AIthough Americans have gained a better understanding of their domestic economy since World War II, knowledge of international economics has remained limited. In recent years, however, international economic matters so frequently occupied the financial headlines that attention has been forced beyond domestic concerns to those of the world market. Through its eight editions, this book has provided a simplified fied yet comprehensive analysis of international economic relations, with the fundamental objective of extracting maximum policy insight from a minimum number of theoretical constructs. Written for students with only one or two previous courses in the principles of economics, it is designed primarily as a basic text for a one- or two-term undergraduate sequence in international economics. Although the volume contains analytical tools, the material is arranged so that the theoretical sections may be omitted and the main text used also in policyoriented noneconomics courses. Finally, the book is useful as supplementary reading for students of international relations and business administration, as well as for economics students in money and banking courses. The method of presentation has remained unchanged through all editions. Each subject is expounded verbally before any use is made of analytical tools beyond simple supply and demand curves. Whenever technical terms and tools are needed, they are carefully explained. Although the focus is on policy, the necessary theoretical underpinnings are fully presented.