Law of comparative advantage -- Standard theory of international trade -- Demand and supply, offer curves, and the terms of trade -- Factor endowments and the Heckscher-Ohlin Theory -- Economics of scale, imperfect competition, and international trade -- Economic growth and international trade -- Trade restrictions: Tariffs -- Nontariff trade barriers and the new protectionism -- Economic integration: Customs unions and free trade areas -- International trade and economic development -- International resource movements and multinational corporations -- Balance of payments -- Foreign exchange markets and exchange rates -- Exchange rate determination -- Price adjustment mechanism with flexible and fixed exchange rates -- Income adjustment mechanism and synthesis of automatic adjustments -- Open-economy macroeconomics: Adjustment policies -- Prices and output in an open economy: Aggregate demand and aggregate supply -- Flexible versus fixed exchange rates, the European monetary system, and macroeconomic policy coordination -- International monetary system: Past, present, and future

1. International economic relations