Introduction and Overview.- Part One-International Trade Theory.- The Origins of Trade Theory.- The Ricardian Trade Model.- Factor Intensity.- Stripping Away Ricardo's Assumptions.- Trade Barriers and Protectionism.- Part Two-Global Macroeconomics.- Global Macroeconomics.- Exchange Rates.- The ISLM-BOP Model.- Exports and Imports, Real Exchange Rates.- Inflation Added to the Model.- Capital Flows.- The Global Monetary System.- References.
In the curricula of highly ranked MBA programs, two areas of discussion are conspicuously absent: International Trade, and Global Macroeconomic Policy. In this post-financial crisis environment, as the US and other advanced economies continue to experience sluggish growth, persistently high unemployment, and political agitation for increasingly protectionist policies, discussions pertaining to trade, currencies, and international capital flows are often fraught with emotion, tension, and hysteria. This book cuts through the emotions and superficial "solutions" and provides the reader with a thorough understanding of the hard-hitting theoretical models that drive the global flow of goods, services, and capital in the real world. A key feature of this volume is the presentation of the theoretical models, and the discussion of their implications in the context of real-world applications. This text is uniquely designed for current and future business leaders who are, or will be, engaged in the global economy. Armed with an understanding of the theoretical underpinnings driving goods, capital and ideas across national boundaries, readers will learn to anticipate the effects of trade and macroeconomic policy changes, and will have the tools to make sound, informed decisions for themselves and their global organizations.
Emphasizes the pervasiveness of trade and global macro issues at all levels of strategic decision making in this highly globalized economy
Relates to real-world topics by providing simulated "media articles" following each chapter that will embed key aspects of material covered in the preceding courses
Focuses on the applications and policy implications of the topics discussed
Allows senior executives to make the internationally sophisticated decisions that are imperative in an increasingly global world