This sequel to Market Structure and Foreign Trade examines the new international trade’s applied side. It provides a compact guide to models of the effects of trade policy in imperfectly competitive markets, as well as an up-to-date survey of existing knowledge, which is extended by the authors’ useful interpretations of the results. Elhanan Helpman is Archie Sherman Professor of International Economic Relations at Tel Aviv University. Paul R. Krugman is Professor of Economics at the Massachusetts Institute of Technology and a member of the Group of Thirty.