Paul Krugman


Maurice Obstfeld, University of California


Marc Melitz, Harvard University 

1. Introduction


2. World Trade: An Overview


3. Labor Productivity and Comparative Advantage: The Ricardian Model


4. Specific Factors and Income Distribution


5. Resources and Trade: The Heckscher-Ohlin Model


6. The Standard Trade Model


7. External Economies of Scale and the International Location of Production


8. Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises


9. The Instruments of Trade Policy


10. The Political Economy of Trade Policy


11. Trade Policy in Developing Countries


12. Controversies in Trade Policy 

• The text presents a balance of theoretical and practical coverage of international trade.


• Chapters on core theory are followed by a series of application chapters that confront policy questions using the newest empirical work, data, and policy debates.


• An integrated, empirical-based treatment of the latest models of trade, such as the gravity, Ricardian, factor endowments, and imperfect competition models,


• A thorough discussion of the causes and effects of trade policy focused on the income-distribution effects of trade.


• An emphasis on the potential substitutability of international trade and international movements of factors of production.


• Chapter-opening Learning Goals list the essential concepts so students understand what they need to take away from each chapter.


• Case Studies illustrate theory using real-world applications and provide important historical context.


• Special Boxes offer vivid illustrations of points made in the text.


• End-of-chapter Problems, many of which cite real data or policies, allow students to practice what they're learning.


• Further Reading sections at the end of each chapter provide annotated bibliographies of both seminal works and recent articles, encouraging students to explore the material further.