Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. CHAPTER 1 Introduction to International Macroeconomics

Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 1-1 Companies and Industries within a Country and Global Setting

Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 1-2 Short-Term versus Long-Term Macroeconomic Analysis

Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 1-3 The Three Key Sectors of the Three-Sector Model

Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 1-4 Human Development Index: 1975 versus 2003 Source: United Nations, Human Development Report 2005, cfm?type=1 (accessed March 25, 2006).

Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 1-5 Real GDP and Population as a Percentage of the World Total: Five Largest Developed Nations versus Five Largest Developing Nations Note: No real GDP statistic was available in 1975 for the Russian Federation. Therefore, the Russian Federation’s real GDP was assumed to be 9% of the BCIMR–developing nations’ total, which is approximately what it was in Source (population and real GDP statistics): World Bank Group, ‘‘World Development Indicators Online,’’ (accessed March 25, 2006).

Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 1-6 Inflation-Adjusted, Per Capita Income: 1975 versus 2004* * To make the comparisons more realistic, these figures are stated on a purchasing-power-parity (PPP) basis. PPP is fully explained in the chapter ‘‘Long-Term Exchange Rate Movements and Comparative Advantage.’’ ‘‘PPP-adjusted figures’’ correct for inflation rate and living cost differences among countries. Note: No data were available for the Russian Federation for Source: World Bank Group, ‘‘World Development Indicators Online,’’ ecommerce/catalog/product?item_id= (accessed March 25, 2006).

Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 1-7 Average (Unweighted) Inflation Rates FGJUU–Developed Nations versus BCIMR–Developing Nations Source: World Bank Group, ‘‘World Development Indicators Online,’’ ecommerce/catalog/product?item_id= (accessed March 25, 2006).

Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Demographic Characteristics Geography Population Health/Illiteracy Technology Important home pages Real Goods Market and Labor Market GDP/Income distribution Labor force Inflation rate Leading economic indicators Loanable Funds Market (Interest Rates) Central bank name Money supply Gross saving/GDP General budget deficit or surplus/GDP Interest rates Foreign Exchange Market Currency: Code Exchange rate Exchange rate system Balance of payments Exhibit 1-8 Vital Information for Country Analyses

Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Africa South Africa Eurasia India Japan People’s Republic of China Russian Federation Turkey Europe France Germany Poland United Kingdom Middle East Saudi Arabia North America Mexico United States South America Argentina Brazil Exhibit 1-9 Country Analysis Information Provided in Appendix 1-1

Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Africa South Africa Eurasia India Japan People’s Republic of China Russian Federation Turkey Europe France Germany Poland United Kingdom Middle East Saudi Arabia North America Mexico United States South America Argentina Brazil Exhibit A1-1 Macroeconomic and Demographic Information for 15 Countries