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This fourth edition has been simplified in its presentation from previous editions, particularly with regard to Dornbusch-Fischer-Samuelson model, Krugman trade model, and empirical work on the monetary and portfolio approaches to external balance. These changes make the book more accessible to students and aids them in learning the most important concepts in international economics. Additional case studies and boxes in many chapters help tie concepts to real-world applications and also help students learn them better by making the concepts more interesting and relevant. Throughout the text data has been updated.