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This rigorous and comprehensive text encompasses modern theoretical and applied methods of analysis in the field of international trade. Rather than presenting the theory as a fact, the authors illustrate the application of theory and consider those areas where theory appears deficient to explain observed phenomena. The analysis begins with perfect competition, followed by an examination of imperfectly competitive market structures (including a wide range of models of price and quantity competition) and of multinational production. The final two chapters provide an updated analysis of topics which are not typically covered in other texts, namely the properties of exchange rate regimes for international trade and the relationship between growth and international trade. The appendix indicates sources of data, most of which are available on the Internet.