Introduction

The standard economics approach to normative policy issues has been to look for cases of private market failure as an agenda for economic functions that should be taken on by governments. International economists traditionally studied such issues in the areas of trade and monetary relations, focusing on cases where nonmarket spillovers might justify international policy cooperation or central institutions. As the world has grown smaller through advancements in transportation and communication, the number of international organizations has grown rapidly. Economists have also begun to focus considerable attention on international aspects of what had traditionally been considered primarily domestic issues such as the control of environmental externalities and issues of cost sharing in the provision of public goods. Scholars have begun to apply the insights of the public choice approach to international issues. The analysis of international organizations has been one of the primary areas for applications. The chapter also presents an overview of the key concepts discussed in this book.