International Economics – 9th Edition Instructor’s Manual (6920606.doc) 1-1 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 Nation's 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 today's 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 International Economics – 9th Edition Instructor’s Manual (6920606.doc) 1-2 Dominick Salvatore would spend most of the second class on Section 6 on the major current international economic challenges facing the United States an...
