This chapter provides an introduction to economic crises. It describes a number of different types of crises and defines both contagion and systemic risk. It analyzes balance of payments and currency crises, the Asian crisis, and the global financial crisis. It takes up the potential roles of prudential regulation and currency controls in helping to prevent crises.

This chapter provides an introduction to migration as an aspect of economic globalization. It considers trends in international migration, high- and low-skilled migration, remittances, and migration policy. It relates migration to other aspects of economic globalization.

This chapter provides an introduction to multinational enterprises and foreign direct investment. It considers foreign market entry, motivations for international production, entry mode choice, and empirical patterns of FDI.

This chapter provides an introduction to comparative advantage based on the Heckscher–Ohlin model of international trade. The Heckscher–Ohlin model explains comparative advantage in terms of difference in factor endowments between the countries of the world. The chapter demonstrates the principle of mutual gains from trade. An appendix outlines the gravity model.

This chapter provides an introduction to global value chains. It considers the role of tasks, location, and modes of entry in GVCs. It develops the concepts of internalization and intra-industry trade and takes up the issue of value added in GVCs, including the new concept of trade in value added.

This chapter provides an introduction to the phenomenon of intra-industry trade in both its horizontal and vertical varieties. It introduces the monopolistic competition model of intra-industry trade, a central model of new trade theory. It discusses the smooth adjustment hypothesis, and an appendix introduces the Grubel–Lloyd index of intra-industry trade.

This chapter provides a comprehensive introduction to the World Trade Organization. It considers WTO agreements in the areas of trade in goods, trade in services, and intellectual property. It analyzes the WTO dispute settlement mechanism and the Doha Round of multilateral trade negotiations. An appendix looks at tariff rate reduction formulas.

This chapter provides an introduction to international trade using the supply and demand framework and the concept of absolute advantage. It introduces the idea of mutual gains from trade. An appendix reviews supply and demand.

This chapter provides an introduction to comparative advantage based on the Ricardian model of international trade. The Ricardian model explains comparative advantage in terms of difference in technology between the countries of the world. The chapter demonstrates the principle of mutual gains from trade. An appendix looks at the production possibilities frontier.

This chapter provides an introduction to macroeconomic accounting in international economics, including open-economy accounts and balance of payments accounts. It considers the analysis of the balance of payments and global imbalances. Appendices describe social accounting matrices, a simple Keynesian open-economy model, and the difference between gross domestic product and gross national income.

This chapter provides an introduction to fixed exchange rates. It first considers a range of possible exchange rate regimes. It presents a simple supply and demand model of exchange rate determination and the assets-based approach of the interest rate parity condition, both applied to a fixed exchange rate regime. It considers the role of interest rates and expectations under fixed exchange rates. It briefly considers the impossible trinity and currency boards. An appendix analyzes monetary policies under fixed exchange rate regimes.

This chapter provides and introduction to the political economy of trade. It covers both the Stolper–Samuelson theorem of the Heckscher–Ohlin model and the specific factors model. It applies the Stolper–Samuelson theorem to North–South trade and considers the issue of trade and wages. An appendix considers the subject of endogenous protection.

This chapter provides an introduction to trade policy analysis, including tariffs, quotas, and other non-tariff measures. It provides an introduction to anti-dumping and countervailing measures. Appendices cover the imperfect substitutes model and tariff rate quotas.