This thoroughly revised second edition of Applied International Tradepresents the leading theoretical and applied methods used in the fieldof international trade. It highlights the importance of linking theory todata and of verifying theoretical predictions through empiricalinvestigation. The book also draws out and highlights the theoreticaland policy implications that arise from empirical findings. Features of the second edition include:? Expanded focus on emerging topics such as firm heterogeneity, intrafirmtrade, and the basis and structure of multinational production? Increased coverage of gravity models and international factormovements, including labor migration? Fully updated presentation and discussion of the most recent empiricalfindings, data methods and sources Rigorous and analytical, yet written in an accessible manner with ampleuse of graphs throughout, Applied International Trade is an ideal textfor courses at advanced undergraduate and masters level. For instructors: A companion website is available atwww.palgrave.com/economics/AIT2, comprising lecture slides andan Instructor's Manual with solutions to end-of-chapter problems.