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International Economics – 9th Edition Instructor’s Manual
( FILENAME \* MERGEFORMAT Ch1_Salvatore 9e.doc) 1- PAGE 1 Dominick Salvatore
CHAPTER 1
*(Core Chapter)
INTRODUCTION
OUTLINE
1.1 Importance of International Economics
Case Study 1-1: The Dell and Other PCs Sold in the United States Are All But American
Case Study 1-2: What Is an American Car?
1.2 International Trade and The Nations Standard of Living
Case Study 1-3: Rising Importance of International Trade to the United States
1.3 The Major U.S. Trade Partners: The Gravity Model
1.4 The Subject Matter of International Economics
1.5 Purpose of International Economic Theories and Policies
1.6 Current International Economic Challenges
1.7 The Globalization Challenge
1.8 Organization and Methodology of the Book
Appendix: A1.1 Basic International Trade Data
A1.2 Sources of Additional International Data and Information
Key Terms
Interdependence Adjustment in the balance of payments
Gravity model Microeconomics
International trade theory Macroeconomics
International trade policy Open economy macroeconomics
New protectionism International finance
Foreign exchange markets Globalization
Balance of payments Anti-globalization movement
Lecture Guide
1. As the first chapter of the book, the general aim here is simply to define the field of study of international economics and its importance in todays interdependent world.
The material in this chapter can be covered in two classes. I would utilize one class to cover Sections 1 to 4 and the second class to cover Sections 5 to 8. I would spend most of the second class on Section 6 on the major current international economic challenges facing the United States and the world today and to show how international economics can suggest ways to solve them. This should greatly enhance students motivation.
Answer to Problems
1. a) International economic problems reported in our daily n
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