1: Introduction. PART ONE: INTERNATIONAL TRADE THEORY. 2: The Law of Comparative Advantage. 3: The Standard Theory of International Trade. 4: Demand and Supply, Offer Curves, and the Terms of Trade. 5: Factor Endowments and the Heckscher-Ohlin Theory. 6: Economies of Scale, Imperfect Competition, and International Trade. 7: Economic Growth and International Trade. PART TWO: INTERNATIONAL TRADE POLICY. 8: Trade Restrictions: Tariffs. 9: Nontariff Trade Barriers and the New Protectionism. 10: Economic Integration: Customs Unions and FreeTrade Areas. 11: International Trade and Economic Development. 12: International Resource Movements and Multinational Corporations. PART THREE: BALANCE OF PAYMENTS AND EXCHANGE RATES. 13: Balance of Payments. 14: Foreign Exchange Markets and Exchange Rates. 15: Exchange Rate Determination. PART FOUR: OPEN-ECONOMY MACROECONOMICS AND THE INTERNATIONAL MONETARY SYSTEM. 16: The Price Adjustment Mechanism with Flexible and Fixed Exchange Rates. 17: The Income Adjustment Mechanism and Synthesis of Automatic Adjustments. 18: Open-Economy Macroeconomics: Adjustment Policies. 19: Prices and Output in an Open Economy: Aggregate Demand & Aggregate Supply. 20: Flexible versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination. 21: The International Monetary System: Past, Present, and Future.