International Trade: Theory and Policy - Open Textbook Library (2022)

International Trade: Theory and Policy - Open Textbook Library (1)

(3 reviews)

International Trade: Theory and Policy - Open Textbook Library (2)International Trade: Theory and Policy - Open Textbook Library (3)International Trade: Theory and Policy - Open Textbook Library (4)International Trade: Theory and Policy - Open Textbook Library (5)International Trade: Theory and Policy - Open Textbook Library (6)

Steve Suranovic, George Washington University

Copyright Year:2010

ISBN 13:9781936126446

Publisher:Saylor Foundation

Language:English

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International Trade: Theory and Policy - Open Textbook Library (8)International Trade: Theory and Policy - Open Textbook Library (9)International Trade: Theory and Policy - Open Textbook Library (10)International Trade: Theory and Policy - Open Textbook Library (11)International Trade: Theory and Policy - Open Textbook Library (12)

Reviewed by Scott Ratner, Adjunct Professor, City University of New York on 6/19/18

The book is very well structured and comprehensive, with succinct definitions of key terms and poignant examples of the text substance. Examples of trade come primarily from the developed world, and comparatively little from the developing world...read more

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Reviewed by Scott Ratner, Adjunct Professor, City University of New York on 6/19/18

Comprehensivenessrating:4see less

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The book is very well structured and comprehensive, with succinct definitions of key terms and poignant examples of the text substance. Examples of trade come primarily from the developed world, and comparatively little from the developing world is referenced. Well-rounded exercises and explanations are provided, and the sections on mathematical models and quantitative analysis are presented in a clear and concise manner.

Content Accuracyrating:5

I did not come across any factual errors or biased representation of the material.

Relevance/Longevityrating:5

That the majority of examples of free trade agreements across the globe that the book references are well-established rather than recent, it is unlikely that the text will be obsolete in coming years. Changes, such as the enactment of new major trade deals or international trade guidelines and agreements, will be easy to insert into copies of the text in coming years.

Clarityrating:5

The book is written in a very clear and lucid manner, and the jargon and technical terminology is presented in a reader friendly manner that is accessible to students new and unfamiliar with the topic.

Consistencyrating:5

There is no problem with the internal consistency of any sections of the book.

Modularityrating:4

The text is very easy and readily divisible into smaller sections that can be assigned at different points within the course. Moreover, it can be easily reorganized and realigned with various sub units of a course without presenting the reader with too much disruption,

Organization/Structure/Flowrating:5

The topics of the text are presented thematically with little overlap. More over, the topics are organized in a coherent and logic manner.

Interfacerating:4

The charts and graphs of the book sometime cover more than one page, which at times distorts them and renders it difficult to follow them. It is also somewhat distracting. However, this issue does not detract from the overall quality of the text or present too much confusion to the reader.

Grammatical Errorsrating:5

I did not come across any grammatical errors in the book.

Cultural Relevancerating:4

Although the book is somewhat western centric in the examples it gives, it does not do so in a way that a multicultural audience would find either offensive or exclusionary. That being said, more examples relevant to the developing, non-western world would enhance the analytical depth and relevance of the book to a non-western readership.

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Reviewed by Elizabeth Perry-Sizemore, Professor of Economics, Randolph College on 8/15/17

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I reviewed Version 1.0 of this text in online format in 2017. The content coverage is appropriate for a one semester international trade course. There is no index or glossary, but the reader can hover the cursor over key terms that appear in...read more

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Reviewed by Elizabeth Perry-Sizemore, Professor of Economics, Randolph College on 8/15/17

Comprehensivenessrating:4see less

I reviewed Version 1.0 of this text in online format in 2017.

The content coverage is appropriate for a one semester international trade course. There is no index or glossary, but the reader can hover the cursor over key terms that appear in bold for definitions. The text also has links to related sources and further reading. Chapters 5 and 7 are among the strongest in terms of both clarity and depth. The section-end problems more often assess a student's ability to recall information than apply or critically evaluate it. One way to improve the text is to develop more problems relating to higher level learning outcomes.

Content Accuracyrating:2

The author thoughtfully acknowledges different perspectives on the debates surrounding free trade and protectionism, and does so across chapters rather than relegating the discussion to a single chapter. The author is also careful and consistent throughout the text in identifying both the strengths and limitations of the models presented.

Equations-within text and tables- need thorough editing. The use of subscripts is inconsistent and therefore confusing, and in a small number of places there are errors in equations. My sense is that most or all of this a formatting issue. (I can readily discern what the author intends and it is correct.) In the preface, the author expresses interest in alienating neither PhD-bound economics students nor non-economists for whom the course is required or of interest. I do not believe this goal can be fully realized without tending to the problems in the equations.

Relevance/Longevityrating:3

The book's general content is of lasting relevance. Earlier chapters rely on data from 2009 and should be updated with more recent data. Most links to other sources are still functioning and accurate.

Clarityrating:4

Other than my aforementioned concern about the equations, the text is well-ordered and clear. Each chapter sub-section has clearly identified learning objectives to which the end-of-section "Key Takeaways" specifically relate.

Consistencyrating:4

On the whole, the text is consistent. At times, some topics (for instance, H-O) are referred to before they are fully explained, but most of the time links to the sections addressing them are provided. Occasionally discussion of building-block components of models seems unbalanced. For instance, the notion of a PPF is introduced from the bottom-up while student understanding of indifference curves seems to be assumed. The latter is less likely to be covered in a prerequisite course than the former.

Modularityrating:5

This text seems relatively easy to break into discrete sections. When it is self-referential, it seems to be with good reason.

Organization/Structure/Flowrating:4

The content is presented in a logical fashion both within and across chapters.

Interfacerating:3

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It is easy to navigate this text. Source links, key terms, and table links are helpful and for the most part well-functioning and free from error. Tables and figures were undistorted, although as previously mentioned errors in equations complicate the reader's ability to understand certain material.

Grammatical Errorsrating:5

The text is grammatically correct.

Cultural Relevancerating:3

A frequent criticism I have of economics textbooks is the tendency to overuse the US as an example country, whether in a 1-country or 2-country example. Another common criticism I have is the tendency to overuse he/him/his pronouns. A third is associating men with certain occupations and women with others. I am hopeful that future versions of this text might differentiate it from other texts in regard to this concern.

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Reviewed by Tom Head, Professor of Economics, George Fox University on 2/15/17

The book provides an exhaustive review of key ideas in the economics of international trade. It does not offer an index or glossary, and both would be useful. Reading the book as a pdf I was able to use the search function as a substitute for an...read more

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Reviewed by Tom Head, Professor of Economics, George Fox University on 2/15/17

Comprehensivenessrating:5see less

The book provides an exhaustive review of key ideas in the economics of international trade. It does not offer an index or glossary, and both would be useful. Reading the book as a pdf I was able to use the search function as a substitute for an index; for example, I wanted to review the author's discussion of Paul Krugman's contributions to contemporary trade theory and found all references to Krugman's work by searching for his name.

Content Accuracyrating:5

The content is a basic and standard presentation of key elements in the theory of economic trade, and as such, it offers an accurate survey of this thought.

Relevance/Longevityrating:4

With respect to trade theory itself, the book is sufficiently up-to-date. However, with respect to the few chapters, largely at the beginning and end of the book, that deal with the political economy of international trade and with trade negotiations, it would be desirable to provide a fuller, more updated discussion. For example, there is only one brief mention of TPP. Discussing the TPP, the ASEAN countries, trade debates within the US, EU, etc. would be a key contribution of a new, updated edition.

Clarityrating:5

The book is clearly written with a large array of graphs and numerical examples. While quantitative, it is not excessively so, and the reader does not have to use calculus to comprehend the book's presentations.

Consistencyrating:5

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The book is consistent throughout, both in form and content.

Modularityrating:5

The book's chapters provide a logical structure, and within each chapter the subsections are well organized.

Organization/Structure/Flowrating:5

Yes, the structure and flow are logical and clear.

Interfacerating:4

Generally good. In some chapters there are a number of hot links to sources. Most of these are still working, but a few did not and need updating. Also, such reference links could be used more extensively and consistently throughout the book, and this would be an enhancement.

Grammatical Errorsrating:5

No issues.

Cultural Relevancerating:4

This is largely a book of economic theory and its application to trade topics. As such, it is largely acultural, not being especially sensitive or unsensitive to cultural matters. There are many cultural issues that one could delve into with respect to topics in international economics and globalization; however, those are the topics of this book.

Comments

An instructor's manual would be helpful, as would a second edition in the not too distant future.

Table of Contents

  • Chapter 1: Introductory Trade Issues: History, Institutions, and Legal Framework
  • Chapter 2: The Ricardian Theory of Comparative Advantage
  • Chapter 3: The Pure Exchange Model of Trade
  • Chapter 4: Factor Mobility and Income Redistribution
  • Chapter 5: The Heckscher-Ohlin (Factor Proportions) Model
  • Chapter 6: Economies of Scale and International Trade
  • Chapter 7: Trade Policy Effects with Perfectly Competitive Markets
  • Chapter 8: Domestic Policies and International Trade
  • Chapter 9: Trade Policies with Market Imperfections and Distortions
  • Chapter 10: Political Economy and International Trade
  • Chapter 11: Evaluating the Controversy between Free Trade and Protectionism

Ancillary Material

  • Submit ancillary resource
  • About the Book

    International Trade: Theory and Policy is built on Steve Suranovic's belief that to understand the international economy, students need to learn how economic models are applied to real world problems. It is true what they say, that ”economists do it with models.“ That's because economic models provide insights about the world that are simply not obtainable solely by discussion of the issues. International Trade: Theory and Policy presents a variety of international trade models including the Ricardian model, the Heckscher-Ohlin model, and the monopolistic competition model. It includes trade policy analysis in both perfectly competitive and imperfectly competitive markets.

    The text also addresses current issues such as free trade area formation and administered protection policies. The models are developed, not by employing advanced mathematics, but rather by walking students through a detailed description of how a model's assumptions influence its conclusions. But more importantly, each model and theory is connected to real world policy issues.

    The main purpose of the text is to provide a thorough grounding in the arguments concerning the age-old debate about free trade versus protectionism. This text has the following unique features: The text begins with an historical overview of trade policy issues to provide context for the theory. The text concludes with a detailed economic argument supporting free trade.The welfare analysis in the Ricardian, Heckscher-Ohlin and specific factors models emphasize the redistributive effects of free trade by calculating changes in real incomes.The trade policy chapter provides a comprehensive look at many more trade policies than are found in a printed textbook.

    A chapter about domestic policies contains an evaluation of domestic taxes and subsidies that are often ignored in traditional trade textbooks but are increasingly important as large countries complain more about each other's domestic agriculture policies and labor and environmental policies.

    The text uses the theory of the second-best to explain why protection can improve national welfare. This well-known theoretical result is rarely presented as methodically and consistently as it is in this text.

    International Trade: Theory and Policy by Steve Suranovic is intended for a one-semester course in International Trade. After April 2010, you can check out the entire book online or request a desk copy.

    About the Contributors

    Author

    Steve Suranovic is an associate professor of economics and international affairs at the George Washington University (GW) in Washington, DC. He has a PhD in economics from Cornell University and a BS in mathematics from the University of Illinois at Urbana-Champaign. He has been teaching international trade and finance for more than twenty years at GW and as an adjunct for Cornell University’s Washington, DC, program. In fall 2002, he taught at Sichuan University in Chengdu, China, as a visiting Fulbright lecturer. He has taught a GW class at Fudan University in Shanghai during the summers of 2009 and 2010. He has also spoken to business, government, and academic audiences in Japan, Malaysia, the Philippines, China, and Mongolia as part of the U.S. State Department speaker’s programs.

    His research focuses on two areas: international trade policy and behavioral economics. With respect to behavior, he examines why people choose to do things that many observers view as irrational. Examples include addiction to cigarettes, cyclical dieting, and anorexia. His research shows that dangerous behaviors can be explained as the outcome of a reasoned and rational optimization exercise. With respect to trade policy, his research seeks to reveal the strengths and weaknesses of arguments supporting various policy options. The goal is to answer the question, what trade policies should a country implement? More generally, he applies the economic analytical method to identify the policies that can attract the most widespread support.

    His book A Moderate Compromise: Economic Policy Choice in an Era of Globalization will be released by Palgrave Macmillan in fall 2010. In it he offers a critique of current methods to evaluate and choose policies and suggests a simple, principled, and moderate alternative.

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    FAQs

    What is international trade Theory and policy? ›

    International Trade: Theory and Policy presents a variety of international trade models including the Ricardian model, the Heckscher-Ohlin model, and the monopolistic competition model. It includes trade policy analysis in both perfectly competitive and imperfectly competitive markets.

    What is international trade PDF? ›

    International trade is the exchange of capital, goods, and services across international borders or territories. It is the exchange of goods and services among nations of the world. All countries need goods and services to satisfy their people. Production of goods and services requires resources.

    What are the various theories of international trade? ›

    There are 6 economic theories under International Trade Law which are classified in four: (I) Mercantilist Theory of trade (II) Classical Theory of trade (III) Modern Theory of trade (IV) New Theories of trade. Both of these categories, classical and modern, consist of several international theories.

    What do you mean by trade theory? ›

    The aim of Trade Theory is to explain the existing patterns of trade, the impact on the domestic economy, and the type of public policies that should be introduced to increase a country's well-being.

    Why are international trade theories important? ›

    International Trade Theories explain and facilitate international trade to happen. A wrong mindset or an ill-advised view on international trade can severely affect a country's long-term financial stability.

    What is importance of international trade? ›

    Trade is central to ending global poverty. Countries that are open to international trade tend to grow faster, innovate, improve productivity and provide higher income and more opportunities to their people. Open trade also benefits lower-income households by offering consumers more affordable goods and services.

    What are the 4 types of international trade? ›

    These are:
    • Import Trade. To put it simply, import trade means purchasing goods and services from a foreign country because they cannot be produced in sufficient quantities or at a competitive cost in your own country. ...
    • Export Trade. ...
    • Entrepot Trade. ...
    • The Way Forward.

    What are the 2 types of trade? ›

    Trade, in general, is of two types. They are Internal trade and International trade.

    Who founded the basic concept of international trade theory? ›

    In the early 1900s, a theory of international trade was developed by two Swedish economists, Eli Heckscher and Bertil Ohlin. This theory has subsequently become known as the Heckscher–Ohlin model (H–O model).

    What is new trade theory of international trade? ›

    New trade theory (NTT) is a collection of economic models in international trade theory which focuses on the role of increasing returns to scale and network effects, which were originally developed in the late 1970s and early 1980s.

    What is meant by international trade? ›

    international trade, economic transactions that are made between countries. Among the items commonly traded are consumer goods, such as television sets and clothing; capital goods, such as machinery; and raw materials and food.

    What is theory of international business? ›

    Also called the Heckscher-Ohlin theory; the classical, country-based international theory states that countries would gain comparative advantage if they produced and exported goods that required resources or factors that they had in great supply and therefore were cheaper production factors.

    What is impact of trade theory on international marketing? ›

    Trade theory asserts that economic welfare is dependent on the production of goods and services that a country has comparative advantage in. This in effect means that international competitiveness is secured when production is in line with a country's comparative advantage situation.

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