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Booksummaries to be used with 16th edition

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Booksummary: the printed booksummary contains the following chapters:

  • What distincts international economics from the rest of economics? - Chapter 1
  • How is basic trade theory shaped by demand and supply? - Chapter 2
  • How does comparative advantage foster trade? - Chapter 3
  • Why are factor availability and factor proportions key to international economics? - Chapter 4
  • Who gains and who loses from trade? - Chapter 5
  • How do scale economies and imperfect competition affect trade? - Chapter 6
  • What are the implications of economic growth? - Chapter 7
  • What are the effects of tariffs on trade? - Chapter 8
  • What are the effects of nontariff import barriers on trade? - Chapter 9
  • When should a country opt for or refrain from protection? - Chapter 10
  • What involves pushing exports? - Chapter 11
  • What are the effects of trade discrimination? - Chapter 12
  • How do trade and the environment affect each other? - Chapter 13
  • How are developing countries shaped by trade policies? - Chapter 14
  • How do multinational enterprises and migration shape the international context? - Chapter 15
  • What can we learn from the financial transactions among nations? - Chapter 16
  • How does the foreign exchange market work? - Chapter 17
  • How can we hedge foreign exchange-rate risk? - Chapter 18
  • What are the determinants of exchange rates? - Chapter 19
  • How do governments intervene in the foreign exchange market? - Chapter 20
  • What is the role of international lending in financial crises? - Chapter 21
  • How does the open macroeconomy work? - Chapter 22
  • What are the macroeconomics of achieving internal and external balance with fixed exchange rates? - Chapter 23
  • What are the macroeconomics of achieving internal balance with floating exchange rates? - Chapter 24
  • How do national and global choices shape the global exchange-rate system? - Chapter 25

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ExamTickets

ExamTickets: Tips & Tricks with studying the book

 To reduce or eliminate the exchange-rate risk, you can use hedging. This is the act of eliminating or reducing a net asset or liability position that is in foreign currency. It is important to know what the concept of hedging is, since it will continue to be important throughout the literature of international economics. 

 When the word ‘covered’ is used, it means the investor is hedged or 'covered' against the exchange-rate risk when she uses a foreign-currency investment to take the step from her own currency today to the same currency in the future.

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