Increasing economic globalization has made understanding the world economy more important than ever. From trade agreements to offshore outsourcing to foreign aid, this encyclopedia explains the key elements of the world economy and provides a first step to further research for students and scholars in public policy, international studies, business, and the broader social sciences, as well as for economic policy professionals.

Written by an international team of contributors, this comprehensive reference includes up-to-date entries covering a wide range of topics in international trade, finance, production, and economic development from absolute advantage to World Trade Organization dispute settlement. These topics include concepts and principles, models and theory, institutions and agreements, policies and instruments, analysis and tools, and sectors and special issues. Each entry includes cross-references and a list of sources for further reading and research. The Princeton Encyclopedia of the World Economy is an essential resource for anyone who needs to better understand the global economy.