The 8th edition of this textbook is completely revised. The theory is fully illustrated with modern applied examples, drawn from international events. It features new material on modern theory, further applications sections illustrating the theory covered, more references to policy issues, and up-to-date coverage of the international institutional environment. In addition, the text has been designed to increase students' understanding: it uses colours to illustrate graphs and important points in the text; and makes full use of boxes and tables to provide associated material and case studies. Algebraic explanations are retained in the book, to provide for the more advanced student, but are restricted to appendices in order to enable all students to understand the intuitively-based explanations contained in the text.