This paper develops a model of an open economy containing both sectors in which wages are market-determined and sectors with wage-setting arrangements. A portion of the latter group of sectors coordinate their wages, taking into account that their collective actions influence the equilibrium...

Introduction to the global economy -- Understanding the global economy -- Comparative advantage : how nations can gain from international trade -- Unit two: International trade : enduring issues -- Sources of comparative advantage -- Regulating international trade : trade policies and their...