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This textbook describes and predicts production, trade and investment across countries. It describes the foundations of international trade and investment, including constant cost, and neoclassical and modern theories of production, industrial organization, and trade. The theory is presented using graphs and numerical examples. Many problems are offered. Over 200 boxed examples illustrate the theory. The text integrates issues of microeconomic trade with macroeconomic policy and finance. The emphasis is on the powerful forces of international markets and the limitations of government policy.