International Economicscaptures the vitality of modern international trade and finance. A classic book by world-renowned authors, the Seventh Edition is comprehensively revised and updated in a new, full-color format. Each half of the book contains a core of theory chapters followed by chapters applying the theory to major policy questions of the past and present. Core theory chapters, followed by chapters that apply theory to major policy questions. Integrated treatment and empirical evidence of the latest models of trade, including the Gravity, Ricardian, specific factors, factor endowments, and imperfect competition models. Thorough discussion of the causes and effects of trade policy, focusing on the income-distribution effects of trade. Clear presentation of a unified model of open-economy macroeconomics based on an asset-market approach to exchange rate determination with a central role for expectations.