Patterns of trade and the gains from trade: insights from classical theory -- Trade between dissimilar countries: Insights from the factor proportions theory -- Trade between similar countries: Implications of decreasing costs and imperfect competition -- Theory of protection: Tariffs and other barriers to trade -- Arguments for protection and the political economy of trade policy -- Regional blocs: Preferential trade liberalization -- Commercial policy: History and recent controversies -- International mobility of labor and capital -- Trade and growth -- Issues of international public economics -- Balance-of-payments accounting -- Markets for foreign exchange -- International derivatives: Foreign exchange forwards, futures, and options -- Alternative models of balance-of-payments or exchange-rate determination -- Payments adjustment with fixed exchange rates -- Balance-of-payments adjustment through exchange rate changes -- Open economy macroeconomics with fixed exchange rates -- Theory of flexible exchange rates -- International monetary system: History and current controversies

1. International economic relations