This new edition has been rewritten to provide an up-to-date, clear and comprehensive account of the most important developments currently taking place in the world economy. The text introduces the major economic theories and models with an emphasis on changes within the world trading system and how governments respond. New features include:
* an expansion of chapter three to include formal models of intra-industry trade under imperfect competition
* two separate chapters on Japan and newly industrialising countries, updating and incorporating new material
* new sections on Strategic Trade Policy and on the Political Economy of Protectionism
* a new chapter on the institutional aspects of world trade in discussing the deliberations of the World Trade Organisation
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