[...]... prices of crude petroleum, 19 73–20 01 (dollars per barrel) 3 4 23 25 28 29 31 33 34 36 38 39 40 43 53 55 58 73 74 76 78 79 80 86 87 88 90 95 97 99 10 2 xiv Figures 4.9 4 .10 5 .1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 6 .1 6.2 6.3 6.4 6.5 7 .1 9 .1 10 .1 10.2 10 .3 10 .4 11 .1 11. 2 11 .3 11 .4 13 .1 13.2 14 .1 14.2 14 .3 16 .1 16.2 16 .3 16 .4 16 .5 16 .6 16 .7 16 .8 16 .9 16 .10 16 .11 16 .12 16 .13 16 .14 16 .15 16 .16 17 .1 A possible decline... with a balance-of-payments deficit 10 3 10 6 11 2 11 8 12 2 12 4 12 5 12 7 13 3 13 5 14 5 14 7 15 1 15 5 16 0 16 9 208 225 226 230 2 31 244 245 253 255 295 304 318 323 324 358 359 360 360 3 61 362 363 363 364 365 366 366 367 370 3 71 372 378 Figures xv 17 .2 17 .3 17 .4 17 .5 17 .6 17 .7 17 .8 17 .9 18 .1 18.2 18 .3 18 .4 18 .5 18 .6 18 .7 18 .8 18 .9 18 .10 18 .11 18 .12 18 .13 19 .1 19.2 19 .3 19 .4 19 .5 19 .6 The market for foreign exchange... 56 59 63 67 92 98 11 4 11 5 12 1 12 8 13 1 13 4 14 6 14 7 15 3 17 5 17 9 19 3 19 5 19 7 2 01 216 227 228 230 232 239 246 258 270 306 345 346 357 xx Boxes 16 .2 16 .3 17 .1 17.2 18 .1 18.2 18 .3 18 .4 18 .5 18 .6 19 .1 19.2 19 .3 20 .1 IS/LM/BP analysis of adjustment under the Bretton Woods system The IS/LM/BP graph for the policy assignment model IS/LM/BP analysis of a devaluation The “success” of Mexico’s 19 94–6 adjustment... expansion when BP is steeper than LM 379 380 3 81 3 81 383 384 389 398 406 409 412 412 412 413 413 415 416 420 423 424 424 439 440 4 41 445 445 446 Tables 1. 1 1. 2 2 .1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 3 .1 3.2 4 .1 5 .1 5.2 5.3 5.4 5.5 6 .1 7 .1 7.2 7.3 7.4 8 .1 8.2 8.3 9 .1 9.2 10 .1 10.2 10 .3 11 .1 11. 2 11 .3 15 .1 15.2 Exports plus imports of goods and services as a share of GNP International capital flows and trade An example... 74.83 Other investment 3 .16 10 0.24 14 6.53 777.68 10 .88 79.92 72.48 580.65 39.20 17 7.39 11 9.04 1. 95 28.30 11 4.04 324.40 Total 1. 49 10 .12 32.43 11 9.93 1. 26 16 .93 47.92 287.68 0 .19 1. 76 8.23 1. 09 0.33 2.53 18 9 .18 Direct investment Source: International Monetary Fund, International Financial Statistics Germany 19 71 1980 19 90 2000 Japan 19 80 19 90 2000 US 19 70 19 80 19 90 2000 UK 19 70 19 80 19 90 2000 Direct investment... Table 1. 2 International capital flows and trade 0.33 2.88 24.82 258.34 2.25 14 .15 22.02 474.59 13 .22 35.39 47.39 0.57 –3.98 13 .44 36.46 Portfolio investment –0 .18 79.74 11 8.48 423. 31 2.73 28 .13 52.24 2 61. 96 24.23 11 8.70 10 . 21 2.78 33 .17 43.28 11 5.49 Other investment Capital inflows 1. 64 92.74 17 7.73 8 01. 58 6.24 59. 21 122 .18 10 24.23 37.64 15 5.85 65.83 4.44 29.52 59.25 3 41. 13 Total 19 . 51 109.62 18 1.73 284.38... a Eurodollar deposit 20.2 A Eurodollar redeposit 20.3 Exchange rate regimes of IMF members as of 31 December 20 01 446 4 51 460 4 61 466 Boxes 2 .1 3 .1 3.2 3.3 3.4 4 .1 4.2 5 .1 5.2 5.3 5.4 5.5 5.6 6 .1 6.2 6.3 7 .1 7.2 8 .1 8.2 8.3 8.4 9 .1 10 .1 10.2 10 .3 10 .4 10 .5 11 .1 11. 2 12 .1 13 .1 15 .1 15.2 16 .1 Offer curves How different are factor endowments? How different are factor intensities? The widening income gap:... 56.6 25.0 63.8 46.8 45.4 11 7.6 11 2.2 65.0 10 4.6 14 .0 28.8 19 .3 25.9 20.4 50.8 50.6 19 .8 61. 6 43.6 39.4 10 9.3 99.6 59.4 14 6.9 15 .7 34.5 15 .2 40.7 23.3 71. 3 57 .1 16.8 48.2 43.6 50.0 14 1.6 95.4 61. 9 19 2 .1 23.2 39.7 17 .2 58 .1 26.0 85.8 58 .1 20 .1 67 .1 55.8 55.7 17 5.6 12 9.6 86.5 229.6 — — 23.2 64.0 Source: Calculated from International Monetary Fund, International Financial Statistics 1 – Introduction 3 Countries... the 19 90s, exchange rates were no longer fixed between many countries, but capital flows internationally were much less restricted –0 .16 4 .19 15 .17 19 7.52 8.77 40.20 83.36 1. 08 3.57 28.80 12 4.94 0.32 7.79 32.63 99.89 1. 20 4.70 24.20 52.05 Portfolio investment 4.90 48.05 31. 53 6.53 19 .23 29.95 15 2.44 1. 68 11 .23 19 .32 266.25 1. 16 81. 22 94.58 411 .54 3.27 57 .12 13 .73 303.27 25.53 89 .14 4 .15 0. 91 19. 41 74.67... Country 19 70 19 75 19 80 19 85 19 90 19 95 2000 United States Canada United Kingdom Japan Germany France Italy Ireland Netherlands Korea Malaysia India China Brazil Mexico 10 .8 42.5 43.8 20.3 43.2 31. 1 30.5 81. 9 91. 3 37.7 90.5 8.0 — 14 .9 17 .4 15 .8 46.8 52.5 25.6 49.5 36.9 39 .1 91. 5 96.4 62.9 92.6 13 .5 — 18 .1 16.5 20.5 54.7 52.0 27.9 55 .1 43.2 44 .1 112 .6 99.9 15 2.7 11 2.6 16 .6 — 20.2 23.7 17 .1 54.0 56.6 25.0 . sources of gain 17 2 The European Union 17 3 NAFTA 17 7 Other regional groups 18 1 Summary of key concepts 18 1 Questions for study and review 18 2 Suggested further reading 18 2 Notes 18 2 8 Commercial. 10 9 Learning objectives 10 9 Administrative issues in imposing tariffs 11 0 Tariffs in a partial equilibrium framework 11 1 Quotas and other nontariff trade barriers 11 6 Production subsidies 12 2 Tariffs in. requested ISBN 0– 415 – 311 53–5 (hbk) ISBN 0– 415 – 311 54–3 (pbk) This edition published in the Taylor & Francis e-Library, 2004. ISBN 0-203-46204 -1 Master e-book ISBN ISBN 0-203-339 61- 4 (Adobe eReader