This new edition of , has been fully revised and updated to reflect current developments in this increasingly important area. New features include: * Completely new introduction and conclusion * Chapter added on integration schemes which includes discussion of the East and the enlargement of the European Union * Chapter on the Common Market expanded to include new developments in capital mobility and industrial policy * new real life examples, quanitative studies and statistical material * Treatment of issues even more accessible following feedback from first edition Building on the reputation of the highly successful first edition, this volume will continue to be considered the definitive work on the subject and to be a vital reference for students of international economics.