Development, Geography and Economic Theory

Author: Paul Krugman (USA)
Publisher:
Publish Date: 2005-03-01
Features: As a branch of economic science, international economics primarily studies economic behavior and conditions under various conditions. It examines not only microeconomic activities such as factor mobility but also macroeconomic issues like exchange rates, balance of payments, price stability, and economic growth. For most open economies, international economics is a more realistic and significant field of study. Given the differences in specific research subjects, international economics is divided into two parts: international trade and international finance. In recent decades, with the continuous development of the global economy, new phenomena and issues have emerged, driving rapid progress in research within these two fields.
In the field of international trade, the growth of intra-industry trade and trade between developed countries has significantly altered traditional perceptions of international trade. The emergence of the "New Trade Theory," which incorporates concepts like imperfect competition and economies of scale, has been a response to these changes. The evolving patterns of trade have prompted further study into the technological, geographical, and historical factors that determine the basis of trade. In policy terms, this has led to the development of "strategic trade policies" and the study of income distribution among interest groups through "political economy." Additionally, research on multinational corporations and regional economic integration has gradually become an important theoretical component.
In the field of international finance, the integration of the international capital market, the establishment of the European Monetary System, the opening of developing countries, and the transition from planned economies have all triggered a series of financial crises. How to mitigate financial risks, reduce external shocks, and maintain macroeconomic stability while pursuing openness has become a key issue in policy-making and international financial research.
To better understand the theories and applications of international economics, we have compiled this series of translated works on international economics. Unlike typical textbooks, this series focuses on the cutting edge of international economics, the analysis of real-world issues, and empirical research in international economic relations. For theorists, this series will help clarify the application of fundamental principles in international economics. For practitioners, the series will provide accessible language and concrete analyses to aid in mastering the theories of international economics.
As humanity enters the 21st century and China prepares to join the World Trade Organization, we dedicate this series to the Chinese economic workers who are preparing to face the challenges of international economics. The series emphasizes the cutting edge of international economics, the analysis of real-world issues, and empirical research in international economic relations. This book constructs insightful models, filling the gap in standard economic theory by incorporating geographic content.