CONTENIDO: International trade theory. World trade: an overview. Labor productivity and comparative advantage: the ricardian model.Resources, comparative advantage, and income distribution. The standard trade model. Economies of scale, imperfect competition, and international trade. International factor movements. International trade policy. The instruments of trade policy. The political economy of trade policy. Trade policy in developing countries. Controversies in trade policy. Exchange rates and open-economy macroeconomics. National income accounting and the balance of payments. Exchange rates and the foreign exchange market: an asset approach. Money, interest rates, and exchange rates. Price levels and the exchange rate in the long run. Output and the exchange rate in the short run. Fixed exchange rates and foreign exchange intervention. International macroeconomic policy. The international monetary system, 1870-1973. Macroeconomic policy and coordination under floating exchange rates. Optimum currency areas and the European Experience. The global capital market: performance and policy problems. Developing countries: growth, crisis, and reform. Mathematical postscripts.