Sunday, December 7, 2008

Negotiation or Macroeconomics

Negotiation: Readings, Exercises, Cases

Author: Roy J Lewicki

Negotiation is a critical skill needed for effective management. NEGOTIATION: READINGS EXERCISES, AND CASES, 5/e takes an experiential approach and explores the major concepts and theories of the psychology of bargaining and negotiation, and the dynamics of interpersonal and inter-group conflict and its resolution. It is relevant to a broad spectrum of management students, not only human resource management or industrial relations candidates. It contains approximately 50 readings, 32 exercises, 9 cases and 5 questionnaires.



Table of Contents:

Section 1The Nature of Negotiation1
1.1How to Get Them to Show You the Money2
1.2Three Approaches to Resolving Disputes: Interests, Rights, and Power10
1.3Consider Both Relationships and Substance When Negotiating Strategically23
Section 2Prenegotiation Planning41
2.1Preparing for Negotiations42
2.2The Negotiation Checklist50
2.3The Right Game: Use G ame Theory to Shape Strategy64
Section 3Strategy and Tactics of Distributive Bargaining83
3.1Negotiation Techniques: How to Keep Br'er Rabbit Out of the Brier Patch84
3.2Secrets of Power Negotiating94
3.3Defusing the Exploding Offer: The Farpoint Gambit105
Section 4Strategy and Tactics of Integrative Negotiation113
4.1Interest-Based Negotiation: An Engine-Driving Change114
4.2Step into My Parlor: A Survey of Strategies and Te chniques for Effective Negotiation122
4.3Some Wise and Mistaken Assumptions about Conflict and Negotiation131
Section 5Communication and Cognitive Biases141
5.1Negotiating Rationally: The Power and Impact of the Negotiator's Frame142
5.2How to Frame a Message: The Art of Persuasion and Negotiation152
5.3Psychological Traps160
5.4The Behavior of Successful Negotiators169
Section 6Finding Negotiation Leverage183
6.1Where Does Power Come From?184
6.2How to Become an Influential Manager192
6.3Breakthrough Bargaining208
6.4The Good Guy's Guide to Office Politics217
Section 7Ethics in Negotiation223
7.1The Ethics and Profitability of Bluffing in Business224
7.2Ethics in Negotiation: Oil and Water or Good Lubrication?230
7.3Deception and Mutual Gains Bargaining: Are they Mut ually Exclusive?245
Section 8Social Context255
8.1When Should We Use Agents? Direct versus Representative Negotiation256
8.2Negotiating in Long-Term Mutually Interdependent Relationships among Relative Equals264
8.3Can We Negotiate and Still be Friends?281
8.4Whom Can You Trust? It's Not So Easy to Tell287
Section 9Coalitions, Multiple Parties, and Teams291
9.1A Core Model of Negotiation292< /TD>
9.2Reengineering Negotiations298
9.3Get Things Done through Coalitions308
Section 10Individual Differences315
10.1The Power of Talk: Who Gets Heard and Why316
10.2Are You Smart Enough to Keep Your Job?330
10.3Should You Be a Negotiator?336
Section 11Global Negotiations339
11.1International Negotiations: An Entirely Different Animal340
11.2Intercultural Negotiation in International Business355
11.3American Strengths and Weaknesses374
11.4Negotiating with Romans378
11.5Negotiating with Romans--Part 2394
Section 12Managing Difficult Negotiation Situations: Individual Approaches417
12.1Negotiating with Problem People418
12.2Open Mouth--Close Career422
12.3Negotiating with a Customer You Can't Afford to Lose427
Section 13Managing Difficult Negotiation Situations: Third-Party Approaches435
13.1When and How to Use Third-Party Help436
13.2Mediator Attitudes toward Outcomes: A Philosophical View454
13.3The Manager as the Third Party: Deciding How to Intervene in Employee Disputes467
Section 14Applications of Negotiation479
14.1Bargaining under the Influence: The Role of Alcohol in Negotiations480
14.2She Stands on Common Ground496
14.3The Ultimate Guide to Internet Deals498
Exercises510
1.The Disarmament Exercise512
2.Pemberton's Dilemma518
3.The Commons Dilemma521
4.The Used Car522
5.Knight Engine/Excalibur Engine Parts524
6.GTechnica--AccelMedia525
7.Universal Computer Company I52 6
8.Universal Computer Company II530
9.Twin Lakes Mining Company531
10.Salary Negotiations534
11.Job Offer Negotiation: Joe Tech and Robust Routers535
12.The Employee Exit Interview540
13.Newtown School Dispute541
14.Bestbooks/Paige Turner547
15.Elmwood Hospital Dispute548
16.The Power Game551
17.Coalition Bargaining552
18.Jordan Electronics Company555
19.Third-Party Conflict Resolution559
20.The Connecticut Valley School564
21.Alpha-Beta567
22.The New House Negotiation569
23.Eurotechnologies, Inc.571
24.The Pakistani Prunes578
25.Planning for Negotiations579
26.Sanibel Island582
27.The Playground Negotiation586
28.Collecting Nos595
29.500 English Sentences597
30.Sick Leave598
31.Town of Tamarack599
32.Bacchus Winery602
Cases603
1.Capital Mortgage Insurance Corporation (A)604
2.Pacific Oil Company (A)619
3.The Ken Griffey Jr. Negotiation647
4.Collective Bargaining at Magic Carpet Airlines: A Union Perspective (A)658
5.Vanessa Abrams (A)667
6.500 English Sentences671
7.Sick Leave681
Questionnaires691
1.The Personal Bargaining Inventory692
2.The SINS II Scale696
3.The Influence Tactics Inventory699
4.The Trust Scale701
5.Communication Competence705

New interesting textbook: Financial Institutions Management and Ale Beer and Brewsters in England

Macroeconomics

Author: Roger A Arnold

Arnold continues to set the standard for clear, balanced, and thorough coverage of principles of economics that is truly engaging. With six new chapters, easy customization, and fully integrated digital and course management options, MACROECONOMICS, 8th Edition is the perfect text to help you learn the basics. Packed with intriguing pop culture examples to which you can relate, the text bolsters interest in economics by illustrating unexpected places economics occurs, how economic forces link events around the world to your lives, and how economics can be used as a tool in understanding the world. In addition, the eighth edition is integrated with such powerful resources as CengageNOW, Aplia, and the Tomlinson Videos. These resources allow you to gain a customized learning path tailored to your specific areas of strength and weakness, ensuring you gain complete mastery of course content. With new content reflecting a changing economy and new resources catering to the ne eds of a changing classroom, Macroeconomics, 8e is your ideal solution for the principles course.



Table of Contents:

Preface     xix
An Introduction to Economics
Economics: The Science of Scarcity
What Economics Is About     1
A Definition of Economics     2
Goods and Bads     2
Resources     2
Scarcity and a Definition of Economics     2
Key Concepts in Economics     5
Opportunity Cost     5
Benefits and Costs     6
Decisions Made at the Margin     8
Efficiency     8
Unintended Effects     10
Exchange     11
Economic Categories     12
Positive and Normative Economics     12
Microeconomics and Macroeconomics     13
A Reader Asks     13
Analyzing the Scene     14
Chapter Summary     15
Key Terms and Concepts     16
Questions and Problems     16
Working with Diagrams     17
Two-Variable Diagrams     17
Slope of a Line     18
Slope of a Line Is Constant     18
Slope of a Curve     20
The 45[Degree] Line     20
Pie Charts     21
Bar Graphs     21
Line Graphs     21
AppendixSummary     24
Questions and Problems     24
Should You Major in Economics?     25
Five Myths about Economics and an Economics Major   &n bsp; 26
What Awaits You as an Economics Major?     28
What Do Economists Do?     29
Places to Find More Information     30
Concluding Remarks     30
Economic Activities: Producing and Trading     31
The Production Possibilities Frontier     32
The Straight-Line PPF: Constant Opportunity Costs     32
The Bowed-Outward (Concave-Downward) PPF: Increasing Opportunity Costs     33
Law of Increasing Opportunity Costs     34
Economic Concepts within a PPF Framework     35
Exchange or Trade     38
Periods Relevant to Trade     39
Trade and the Terms of Trade     40
Costs of Trades     40
Tr ades and Third-Party Effects     42
Production, Trade, and Specialization     42
Producing and Trading     42
Profit and a Lower Cost of Living     45
A Benevolent and All-Knowing Dictator Versus the Invisible Hand     45
A Reader Asks     46
Analyzing the Scene     47
Chapter Summary      47
Key Terms and Concepts     48
Questions and Problems     48
Working with Numbers and Graphs     49
Supply and Demand: Theory     50
A Note about Theories     51
What Is Demand?     51
The Law of Demand     52
What Does Ceteris Paribus Mean?     52
Four Ways to Represent the Law of Demand     52
Two Prices: Absolute and Relative     53
Why Does Quantity Demanded Go Down as Price Goes Up?     53
Individual Demand Curve and Market Demand Curve     54
A Change in Quantity Demanded Versus a Change in Demand     55
What Factors Cause the Demand Curve to Shift?     57
Movement Factors and Shift Factors     59
Supply     60
The Law of Supply     61
Why Most Supply Curves Are Upward Sloping     61
Changes in Supply Mean Shifts in Supply Curves     62
What Factors Cause the Supply Curve to Shift?     63
A Change in Supply Versus a Change in Quantity Supplied     64
The Market: Putting Supply and Demand Together     65
Supply and Demand at Work at an Auction     65
The Language of Supply and Demand: A Few Important Terms      66
Moving to Equilibrium: What Happens to Price When There Is a Surplus or a Shortage?     67
Speed of Moving to Equilibrium     68
Moving to Equilibrium: Maximum and Minimum Prices     68
Equilibrium in Terms of Consumers' and Producers' Surplus     70
What Can Change Equilibrium Price and Quantity?     71
Price Controls     73
Price Ceiling: Definition and Effects     73
Do Buyers Prefer Lower Prices to Higher Prices?     76
Price Floor: Definition and Effects     76
A Reader Asks & nbsp;   77
Analyzing the Scene     78
Chapter Summary     78
Key Terms and Concepts     79
Questions and Problems     80
Working with Numbers and Graphs     80
Supply and Demand: Practice     82
Why Do Colleges Use GPAs, ACTs, and SATs for Purposes of Admission?     83
What Will Happen to the Price of Marijuana If the Purchase and Sale of Marijuana Are Legalized?     84
Where Did You Get That Music?     85
Television Shows During the Olympics     86
Who Feeds Cleveland?     86
The Minimum Wage Law     87
Loud Talking at a Restaurant     88
Price Ceiling in the Kidney Market     &n bsp;89
Healthcare and the Right to Sue Your HMO     91
Being Late to Class     92
If Gold Prices Are the Same Everywhere, Then Why Aren't House Prices?     93
Do You Pay for Good Weather?     94
Paying Ail Professors the Same Salary     94
Price Floors and Winners and Losers     96
College Superathletes     97
Supply and Demand on a Freeway     99
What Does Price Have to Do with Getting to Class on Time?     101
The Space Within Space     102
10 A.M. Classes in College     102
Who Pays the Tax?     103
A Reader Asks     105
Analyzing the Scene     105
Chapter Summary   &nb sp; 106
Key Terms and Concepts     107
Questions and Problems     108
Working with Numbers and Graphs     109
Macroeconomics
Macroeconomic Fundamentals
Macroeconomic Measurements, Part I: Prices and Unemployment     111
How to Approach the Study of Macroeconomics     112
Macroeconomic Problems     112
Macroeconomic Theories     112
Macroeconomic Policies     113
Different Views of How the Economy Works     113
Three Macroeconomic Organizational Categories     113
Macroeconomic Measures     115
Measuring Prices Using the CPI     115
Inflation and the CPI     117
The Substitution Bias in Fixed-Weighted Mea sures     118
GDP Implicit Price Deflator     119
Converting Dollars from One Year to Another     119
Measuring Unemployment     120
Who Are the Unemployed?     121
The Unemployment and Employment Rates     122
Reasons for Unemployment     123
Discouraged Workers     123
Types of Unemployment     123
What Is Full Employment?     125
Cyclical Unemployment     125
A Reader Asks     127
Analyzing the Scene     127
Chapter Summary     128
Key Terms and Concepts     129
Questions and Problems     129
Working with Numbers and Graphs &nb sp;   129
Macroeconomic Measurements, Part II: GDP and Real GDP     131
Gross Domestic Product     132
Three Ways to Compute GDP     132
What GDP Omits     133
GDP Is Not Adjusted for Bads Generated in the Production of Goods     134
Per Capita GDP     134
Is Either GDP or Per Capita GDP a Measure of Happiness or Well-Being?     134
The Expenditure Approach to Computing GDP for a Real-World Economy     136
Expenditures in a Real-World Economy     136
Computing GDP Using the Expenditure Approach     137
The Income Approach to Computing GDP for a Real-World Economy     138
Computing National Income     141
From National Income to GDP: Making Some Adjustments     141
Other National Income Accounting Measurements     143
Net Domestic Product     143
Personal Income     143
Disposable Income     144
Real GDP     144
Why We Need Real GDP     144
Computing Real GDP     145
The General Equation for Real GDP     145
What Does It Mean If Real GDP Is Higher in One Year Than in Another Year?     145
Real GDP, Economic Growth, and Business Cycles     146
A Reader Asks     148
Analyzing the Scene     148
Chapter Summary     149
Key Terms and Concepts     150
Questions and Problems   & nbsp; 150
Working with Numbers and Graphs     151
Macroeconomic Stability, Instability, and Fiscal Policy
Aggregate Demand and Aggregate Supply      152
The Two Sides to an Economy     153
Aggregate Demand     153
Why Does the Aggregate Demand Curve Slope Downward?     153
A Change in the Quantity Demanded of Real GDP Versus a Change in Aggregate Demand     156
Changes in Aggregate Demand: Shifts in the AD Curve     156
How Spending Components Affect Aggregate Demand     157
Factors That Can Change C, I, G, and NX (EX - IM) and Therefore Can Change AD     158
Can a Change in the Money Supply Change Aggregate Demand?     161
Short-Run Aggregate Supply     162
Sho rt-Run Aggregate Supply Curve: What It Is and Why It Is Upward Sloping     162
What Puts the "Short Run" in SRAS?     163
Changes in Short-Run Aggregate Supply: Shifts in the SRAS Curve     163
Putting AD and SRAS Together: Short-Run Equilibrium     165
How Short-Run Equilibrium in the Economy Is Achieved     166
Thinking in Terms of Short-Run Equilibrium Changes in the Economy     167
An Important Exhibit     169
Long-Run Aggregate Supply     170
Going from the Short Run to the Long Run     170
Short-Run Equilibrium, Long-Run Equilibrium, and Disequilibrium     172
A Reader Asks     173
Analyzing the Scene      173
Chapter Summary  &n bsp;  174
Key Terms and Concepts     175
Questions and Problems     175
Working with Numbers and Graphs     176
The Self-Regulating Economy     177
The Classical View     178
Classical Economists and Say's Law     178
Classical Economists and Interest Rate Flexibility     178
Classical Economists on Prices and Wages     180
Three States of the Economy     181
Real GDP and Natural Real GDP: Three Possibilities     181
The Labor Market and the Three States of the Economy     182
One Nagging Question: How Can the Unemployment Rate Be Less Than the Natural Unemployment Rate?     184
The Self-Regulating Economy    &nb sp;185
What Happens If the Economy Is in a Recessionary Gap?     185
What Happens If the Economy Is in an Inflationary Gap?     186
The Self-Regulating Economy: A Recap     188
Policy Implication of Believing the Economy Is Self-Regulating     189
Changes in a Self-Regulating Economy: Short Run and Long Run     189
A Reader Asks     191
Analyzing the Scene     191
Chapter Summary     192
Key Terms and Concepts     193
Questions and Problems     193
Working with Numbers and Graphs     194
Economic Instability: A Critique of the Self-Regulating Economy     195
Questioning the Classical Position     196
Keynes's Criti cism of Say's Law in a Money Economy     196
Keynes on Wage Rates     198
New Keynesians and Wage Rates     198
Keynes on Prices     199
Is It a Question of the Time It Takes for Wages and Prices to Adjust?     200
The Simple Keynesian Model     201
Assumptions     201
The Consumption Function     201
Consumption and Saving     203
The Multiplier     203
The Multiplier and Reality     205
The Simple Keynesian Model in the AD-AS Framework     206
Shifts in the Aggregate Demand Curve     206
The Keynesian Aggregate Supply Curve     206
The Economy in a Recessionary Gap      208
Government's Role in the Economy     209
The Theme of the Simple Keynesian Model     209
The Simple Keynesian Model in the TE-TP Framework     210
Deriving a Total Expenditures (TE) Curve     210
What Will Shift the TE Curve?     211
Comparing Total Expenditures (TE) and Total Production (TP)     212
Moving from Disequilibrium to Equilibrium     212
The Graphical Representation of the Three States of the Economy in the TE-TP Framework     213
The Economy in a Recessionary Gap and the Role of Government     214
The Theme of the Simple Keynesian Model     216
A Reader Asks     216
Analyzing the Scene     217
Chapter Summary   ;   218
Key Terms and Concepts     219
Questions and Problems     219
Working with Numbers and Graphs     220
The Federal Budget and Fiscal Policy     221
The Federal Budget     222
Government Expenditures     222
Government Tax Revenues     223
Budget Deficit, Surplus, or Balance     225
Structural and Cyclical Deficits     226
The Public Debt     226
Fiscal Policy     226
Some Relevant Fiscal Policy Terms     227
Two Important Notes     227
Demand-Side Fiscal Policy     227
Shifting the Aggregate Demand Curve     227
Fiscal Policy: A Keynesian Perspective     228
Crowding Out: Questioning Expansionary Fiscal Policy     229
Lags and Fiscal Policy      232
Crowding Out, Lags, and the Effectiveness of Fiscal Policy     233
Supply-Side Fiscal Policy     233
Marginal Tax Rates and Aggregate Supply     233
The Laffer Curve: Tax Rates and Tax Revenues     234
A Reader Asks     237
Analyzing the Scene     238
Chapter Summary     238
Key Terms and Concepts     239
Questions and Problems     240
Working with Numbers and Graphs     240
Money, the Economy, and Monetary Policy
Money and Banking     241
Money: What Is It and How Did It Com e to Be?     242
Money: A Definition     242
Three Functions of Money     242
From a Barter to a Money Economy: The Origins of Money     243
Money in a Prisoner of War Camp     244
Money, Leisure, and Output     244
What Gives Money Its Value?     245
Defining the Money Supply     246
M1     246
M2     246
Where Do Credit Cards Fit In?     247
How Banking Developed     249
The Early Bankers     249
The Federal Reserve System     249
The Money Creation Process     249
The Bank's Reserves and More     250
The Banking System and the Money Expansion Process     251
Why Maximum? Answer: No Cash Leakages and Zero Excess Reserves     254
Who Created What?     254
It Works in Reverse: The "Money Destruction" Process     255
We Change Our Example     256
A Reader Asks     257
Analyzing the Scene     257
Chapter Summary     258
Key Terms and Concepts     258
Questions and Problems     259
Working with Numbers and Graphs     259
The Federal Reserve System     260
The Structure and Functions of the Fed     261
The Structure of the Fed     261
The Functions of the Fed     262
Fed Tools for Controlling the Money Supply     264
Open Market Operations     264
The Required Reserve Ratio     267
The Discount Rate     267
A Reader Asks     269
Analyzing the Scene     270
Chapter Summary     270
Key Terms and Concepts     270
Questions and Problems     271
Working with Numbers and Graphs     271
Money and the Economy     272
Money and the Price Level      273
The Equation of Exchange     273
From the Equation of Exchange to the Simple Quantity Theory of Money     274
The Simple Quantity Theory of Money in an AD-AS Framework     275
Dropping the Assumptions That V and Q A re Constant     277
Monetarism     278
Monetarist Views     278
Monetarism and AD-AS     279
The Monetarist View of the Economy     281
Inflation     281
One-Shot Inflation     282
Continued Inflation     284
Money and Interest Rates     287
What Economic Variables Are Affected by a Change in the Money Supply?     287
The Money Supply, the Loanable Funds Market, and Interest Rates     288
So What Happens to the Interest Rate as the Money Supply Changes?     292
The Nominal and Real Interest Rates     292
A Reader Asks     293
Analyzing the Scene     294
Chapter S ummary     295
Key Terms and Concepts     296
Questions and Problems     296
Working with Numbers and Graphs     297
Monetary Policy     298
The Money Market     299
The Demand for Money     299
The Supply of Money     300
Equilibrium in the Money Market     300
Transmission Mechanisms     300
The Keynesian Transmission Mechanism: Indirect     301
The Keynesian Mechanism May Get Blocked     301
The Monetarist Transmission Mechanism: Direct     305
Monetary Policy and the Problem of Inflationary and Recessionary Gaps     306
Monetary Policy and the Activist-Nonactivist Debate  &nbs p;  308
The Case for Activist (or Discretionary) Monetary Policy     309
The Case for Nonactivist (or Rules-Based) Monetary Policy     309
Nonactivist Monetary Proposals     312
A Constant-Money-Growth-Rate Rule     312
A Predetermined-Money-Growth-Rate Rule     312
The Fed and the Taylor Rule     313
Inflation Targeting     314
A Reader Asks     315
Analyzing the Scene     316
Chapter Summary     316
Key Terms and Concepts     317
Questions and Problems     317
Working with Numbers and Graphs     318
Expectations and Growth
Expectations Theory and the Economy     319
Philli ps Curve Analysis     320
The Phillips Curve     320
Samuelson and Solow: The Phillips Curve Is Americanized     320
The Controversy Begins: Are There Really Two Phillips Curves?     321
Things Aren't Always as We Thought     321
Friedman and the Natural Rate Theory     321
How Do People Form Their Expectations?     324
Rational Expectations and New Classical Theory     326
Rational Expectations     326
Do People Anticipate Policy?     326
New Classical Theory: The Effects of Unanticipated and Anticipated Policy     327
Policy Ineffectiveness Proposition (PIP)     328
Rational Expectations and Incorrectly Anticipated Policy   &nbs p; 329
How to Fall into a Recession Without Really Trying     330
New Keynesians and Rational Expectations     332
Looking at Things from the Supply Side: Real Business Cycle Theorists     333
A Reader Asks     335
Analyzing the Scene     335
Chapter Summary     336
Key Terms and Concepts     337
Questions and Problems     337
Working with Numbers and Graphs     338
Economic Growth     339
A Few Basics About Economic Growth     340
Do Economic Growth Rates Matter?     340
Growth Rates in Selected Countries      341
Two Types of Economic Growth     342
Economic Growth and the Price L evel     343
What Causes Economic Growth?     345
Natural Resources     345
Labor     345
Capital     346
Technological Advances     347
Free Trade as Technology     347
Property Rights Structure     347
Economic Freedom     347
Policies to Promote Economic Growth     349
Economic Growth and Special Interest Groups     350
New Growth Theory     351
What Was Wrong with the Old Theory? Or What's New with New Growth Theory?     351
Discovery, Ideas, and Institutions     353
Expanding Our Horizons     353
A Reader Asks     354
Analyzing th e Scene     355
Chapter Summary     355
Key Terms and Concepts     356
Questions and Problems     357
Working with Numbers and Graphs     357
The Global Economy
International Economics and Globalization
International Trade     359
International Trade Theory     360
How Do Countries Know What to Trade?     360
How Do Countries Know When They Have a Comparative Advantage?      363
Trade Restrictions     365
The Distributional Effects of International Trade     365
Consumers' and Producers' Surplus     365
The Benefits and Costs of Trade Restrictions     366
If Free Trade Results in Net Gain, Why Do Nations Sometim es Restrict Trade?     369
The World Trade Organization (WTO)     373
A Reader Asks     374
Analyzing the Scene     374
Chapter Summary     375
Key Terms and Concepts     376
Questions and Problems     376
Working with Numbers and Graphs     377
International Finance     378
The Balance of Payments     379
Current Account     380
Capital Account     383
Official Reserve Account     383
Statistical Discrepancy     383
What the Balance of Payments Equals     384
The Foreign Exchange Market     384
The Demand for Goods   &n bsp; 385
The Demand for and Supply of Currencies     385
Flexible Exchange Rates     387
The Equilibrium Exchange Rate     387
Changes in the Equilibrium Exchange Rate     388
Factors That Affect the Equilibrium Exchange Rate      388
Fixed Exchange Rates     391
Fixed Exchange Rates and Overvalued/Undervalued Currency     392
What Is So Bad About an Overvalued Dollar?     393
Government Involvement in a Fixed Exchange Rate System     394
Options Under a Fixed Exchange Rate System     394
The Gold Standard     396
Fixed Exchange Rates Versus Flexible Exchange Rates     398
Promoting International Trade     398
Optimal Currency Areas     399
The Current International Monetary System     400
A Reader Asks     402
Analyzing the Scene     403
Chapter Summary     403
Key Terms and Concepts     404
Questions and Problems     405
Working with Numbers and Graphs     405
Globalization     406
What Is Globalization?     407
A Smaller World     407
A World Economy     407
Two Ways to "See" Globalization     408
No Barriers     408
A Union of States     408
Globalization Facts     408
International Trade     409
Foreign Exch ange Trading     409
Foreign Direct Investment     409
Personal Investments     411
The World Trade Organization     411
Business Practices     411
Movement Toward Globalization     411
The End of the Cold War     411
Advancing Technology     412
Policy Changes     412
Benefits and Costs of Globalization     414
The Benefits     414
The Costs     416
The Continuing Globalization Debate     417
More or Less Globalization: A Tug of War?     418
Less Globalization     418
More Globalization     419
A Reader Asks    &nb sp;420
Analyzing the Scene     420
Chapter Summary     421
Key Terms and Concepts     421
Questions and Problems     422
Practical Economics
Financial Matters
Stocks, Bonds, Futures, and Options     423
Financial Markets     24
Stocks     424
Where Are Stocks Bought and Sold?     424
The Dow Jones Industrial Average (DJIA)     426
How the Stock Market Works     427
Why Do People Buy Stock?     429
How to Buy and Sell Stock     430
Buying Stocks or Buying the Market     430
How to Read the Stock Market Page     432
Bonds     434
The Components of a Bond&n bsp;    434
Bond Ratings     434
Bond Prices and Yields (or Interest Rates)     435
Types of Bonds     435
How to Read the Bond Market Page     436
Risk and Return     437
Futures and Options     438
Futures     438
Options     440
A Reader Asks     441
Analyzing the Scene     442
Chapter Summary     443
Key Terms and Concepts     443
Questions and Problems     443
Working with Numbers and Graphs     444
Web Chapters
Web Chapters
Agriculture: Farmers' Problems, Government Policies, and Unintended Effects     741
Agriculture: The Issue s     742
A Few Facts     742
Agriculture and Income Inelasticity     743
Agriculture and Price Inelasticity     743
Price Variability and Futures Contracts     744
Can Bad Weather Be Good for Farmers?     745
Agricultural Policies     746
Price Supports     746
Restricting Supply     746
Target Prices and Deficiency Payments      748
Production Flexibility Contract Payments, (Fixed) Direct Payments, and Countercyclical Payments     749
Nonrecourse Commodity Loans     749
A Reader Asks     750
Analyzing the Scene     751
Chapter Summary     751
Key Terms and Conc epts     751
Questions and Problems     752
Working with Numbers and Graphs     753
International Impacts on the Economy     753
International Factors and Aggregate Demand     754
Net Exports     754
The J-Curve     755
International Factors and Aggregate Supply     756
Foreign Input Prices     756
Why Do Foreign Input Prices Change?     757
Factors That Affect Both Aggregate Demand and Aggregate Supply     757
The Exchange Rate     757
What Role Do Interest Rates Play?     758
Deficits: International Effects and Domestic Feedback     759
The Budget Deficit and Expansionary Fiscal Policy&nb sp;    759
The Budget Deficit and Contractionary Fiscal Policy     760
The Effects of Monetary Policy     761
A Reader Asks     763
Analyzing the Scene     764
Chapter Summary     764
Key Terms and Concepts     765
Questions and Problems     765
Working with Numbers and Graphs     766
Self-Test Appendix     445
Glossary     459
Index     467

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