As the realities of global economic interactions become more significant, the growing importance of international economic policy to the performance of the domestic economy, as well as to foreign policy, becomes better understood. The increasing appreciation of the importance of international economic relations is the reason for this new edition. This work is the definitive study of the step-by-step process of how U.S. international economic policy is formulated and how the decision-making process functions. This fourth edition has been updated to explain policymaking associated with, among other issues: the North American Free Trade Agreement, environment and trade issues, renewing China's most favored nation tarriff status, economic assistance to Russia, the industrial policy/international competitiveness debate, the Trade Act of 1988, and U.S. government loans to Saddam Hussein just prior to the invasion of Kuwait. Economists, business people, policy-makers, politicians, political scientists, and students will find this volume timely and informative.