Summary of International Economics

International Economics is a text book written by Robert C. Feenstra and Alan M. Taylor, which provides a comprehensive exploration of the theories and the applications of international economics. It covers both traditional and modern topics, such as the theory of international trade, international capital flows, exchange rate determination, and economic policy coordination. The book discusses the principles of international economics, such as differences in opportunity cost, economies of scale, and the gains from trade, and details why goods and services are exchanged across countries. It explains topics such as balance of payments, current accounts, exchange rates and international capital flows. It also explains the trade implications of market imperfections, governmental interventions, and exchange rate volatility. The book also considers the implications of trade and capital flows for economic growth, welfare, and distribution, and optimally designed policies for dealing with these flows. Lastly, it looks at the macroeconomic implications of international coordination of policies under imperfect or incomplete markets.