Introduction --Labor productivity and comparative advantage: The Ricardian model -- Specific factors and income distribution -- Resources and trade: The Heckscher-Ohlin model -- The standard trade model -- Economies of scale, imperfect competitions, and international trade -- International factor movements -- The instruments of trade policy -- The political economy of trade policy -- Trade policy in developing countries -- Controversies in trade policy -- National income accounting and the balance of payments -- Exchange rates and the foreign exchange markets: an asset approach -- Money, interest rates, and exchange rates -- Price levels and the exchange rate in the long run -- Output and the exchange rate in the short run -- Fixed exchange rates and foreign exchange intervention -- The international monetary system, 1870-1973 -- Macroeconomic policy and coordination under floating exchange rates -- Optimum currency areas and the European experience -- The Global capital market: Performance and policy problems -- Developing countries: growth, crisis, and reform.