As the world economy becomes more integrated, products become more globalized. Airplanes, automobiles, computers, watches, and garments are among products whose constituent parts are made all over the world. This volume presents arguments and evidence showing that this process is benign: it raises competitiveness, creates jobs, and enhances economic welfare.

In this volume, Sven W. Arndt offers succinct and rigorous explanations of important developments in trade, finance, and international monetary relations. The topics include economic and monetary integration, cross-border production networks, and stabilization policy in orthodox and mixed exchange-rate regimes.

How competitive is the UK economy? Is it capable of responding successfully to shocks emanating from abroad? The five case studies prepared for this volume identify the main problem areas which currently affect the ability of the UK to sustain a competitive international position.