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Instructor’s Manual

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Instructor s Manualto accompanyKrugman & ObstfeldInternational Economics:Theory and PolicySixth EditionLinda S. GoldbergFederal Reserve Bank of New YorkMichael W. KleinTufts UniversityThe Fletcher School of Law and DiplomacyJay C. ShambaughDartmouth CollegeThe views presented in this book are those of the authors and need not reflect the views of theFederal Reserve Bank of New York or the Federal Reserve pageContentsiiiChapter 1 Introduction1Overview of Section I: International Trade Theory3Chapter 2 Labor Productivity and Comparative Advantage: The Ricardian Model 7Chapter 3 Specific Factors and income Distribution13Chapter 4 Resources and Trade: The Heckscher-Ohlin Model21Chapter 5 The Standard Trade Model27Chapter 6 Economies of Scale, Imperfect Competition, and International Trade 35Chapter 7 International Factor Movements41Overview of Section II.

Chapter 12 National Income Accounting and the Balance of Payments 81 Chapter 13 Exchange Rates and the Foreign Exchange Market: 89 An Asset Approach Chapter 14 Money, Interest Rates, and Exchange Rates 101 Chapter 15 Price Levels and the Exchange Rate in the Long Run 109 Chapter 16 Output and the Exchange Rate in the Short Run 119

  Chapter, Income, Balance, National, Payments, Accounting, Chapter 13, National income accounting and the balance of payments

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