Economics
International Economics
International economics is the study of how countries interact through trade, finance, and investment. It examines the effects of international trade on economic growth, income distribution, and employment. Key topics include exchange rates, balance of payments, and trade policies.
Written by Perlego with AI-assistance
Related key terms
1 of 5
7 Key excerpts on "International Economics"
No longer available |Learn more- (Author)
- 2014(Publication Date)
- College Publishing House(Publisher)
____________________ WORLD TECHNOLOGIES ____________________ Chapter- 1 Introduction to International Economics International Economics is concerned with the effects upon economic activity of international differences in productive resources and consumer preferences and the institutions that affect them. It seeks to explain the patterns and consequences of transactions and interactions between the inhabitants of different countries, including trade, investment and migration. • International trade studies goods-and-services flows across international boundaries from supply-and-demand factors, economic integration, and policy variables such as tariff rates and trade quotas. • International finance studies the flow of capital across international financial markets, and the effects of these movements on exchange rates. • International monetary economics and macroeconomics studies money and macro flows across countries. International trade Scope and methodology The economic theory of international trade differs from the remainder of economic theory mainly because of the comparatively limited international mobility of the capital and labour . In that respect, it would appear to differ in degree rather than in principle from the trade between remote regions in one country. Thus the methodology of international trade economics differs little from that of the remainder of economics. However, the direction of academic research on the subject has been influenced by the fact that governments have often sought to impose restrictions upon international trade, and the motive for the development of trade theory has often been a wish to determine the consequences of such restrictions.
eBook - PDF- Dominick Salvatore(Author)
- 2014(Publication Date)
- Wiley(Publisher)
The United States is simply spending too much and living beyond its means—a situation that the United States needs to correct. Chapter One Introduction to the Global Economy 11 1.5 THE SUBJECT MATTER OF International Economics International Economics deals with the economic and financial interdepen- dence among nations. It analyzes the flow of goods, services, payments, monies, and people between a nation and the rest of the world, the policies directed at regulating these flows, and their effect on the nation’s welfare. This economic and financial interdependence is affected by, and in turn influences, the political, social, cultural, and military relations among nations. Balance of pay- ments A summary statement of all the international transac- tions of the residents of a nation with the rest of the world during a particu- lar period of time, usually a year. Specifically, International Economics deals with international trade theory, international trade policy, the balance of payments and foreign exchange markets, and open-economy macroeconomics. International trade theory analyzes the basis for and the gains from trade. International trade policy examines the reasons for and the effects of trade restrictions. The balance of payments measures a nation’s total receipts from and the total Foreign exchange markets The framework for the exchange of one national currency for another. payments to the rest of the world, while foreign exchange markets is the institutional framework for the exchange of one national currency for others. Finally, open-economy macroeconomics deals with the mechanisms of adjustment in the balance of payments disequilibria (deficits and surpluses). More importantly, it analyzes the relationship between the internal and the external sectors of the economy of a nation, and how they are interrelated or Adjustment in the balance of pay- ments The opera- tion and effects of the mechanisms for correcting balance- of-payments disequi- libria.
eBook - PDF- Dominick Salvatore(Author)
- 2012(Publication Date)
- Wiley(Publisher)
The United States is simply spending too much and living beyond its means—a situation that the United States needs to correct. Chapter One Introduction to the Global Economy 13 1.5 THE SUBJECT MATTER OF International Economics International Economics deals with the economic and financial interdepen- dence among nations. It analyzes the flow of goods, services, payments, monies, and people between a nation and the rest of the world, the policies directed at regulating these flows, and their effect on the nation’s welfare. This economic and financial interdependence is affected by, and in turn influences, the political, social, cultural, and military relations among nations. Balance of pay- ments A summary statement of all the international transac- tions of the residents of a nation with the rest of the world during a particu- lar period of time, usually a year. Specifically, International Economics deals with international trade theory, international trade policy, the balance of payments and foreign exchange markets, and open-economy macroeconomics. International trade theory analyzes the basis for and the gains from trade. International trade policy examines the reasons for and the effects of trade restrictions. The balance of payments measures a nation’s total receipts from and the total Foreign exchange markets The framework for the exchange of one national currency for another. payments to the rest of the world, while foreign exchange markets is the institutional framework for the exchange of one national currency for others. Finally, open-economy macroeconomics deals with the mechanisms of adjustment in the balance of payments disequilibria (deficits and surpluses). More importantly, it analyzes the relationship between the internal and the external sectors of the economy of a nation, and how they are interrelated or Adjustment in the balance of pay- ments The opera- tion and effects of the mechanisms for correcting balance- of-payments disequi- libria.
eBook - PDF- James D Gwartney, Richard Stroup, J. R. Clark(Authors)
- 2014(Publication Date)
- Academic Press(Publisher)
PART FIVE ^ ^ ^ ^ ^ ^ . ^ ^ k L. ^ ^ V r r r r mj Y « m r r m m r W r V À A r A •'W À A m m A m m m A m m m r AÎ 1 1 w Am m m V A m m m r A m m m r A m m m r A m m m r m m m r m m m r A A r A AmmWT V Am. AÎ Am Am ^ ^mv k. A A ^ . Am ^ Am j A A A A A A A A A A International Economics This page intentionally left blank //' a foreign country can supply us with a commodity cheaper than we ourselves can make it, /we had/ better buy it of them with some part of our own in-dustry, employed in a way in which we have some advantage. The general industry of the country will not thereby he dimin-ished, but only left to find out the way in which it can be employed with the greatest advantage.' Adam Smith 21 GAINING FROM INTERNATIONAL TRADE We live in a shrinking world. Wheat raised on the flatlands of western Kansas may be processed into bread in a Russian factory. The breakfast of many Americans might include bananas from Honduras, coffee from Brazil, or hot chocolate made from Nigerian cocoa beans. The volume of world trade, en-hanced by improved transportation and communications, has grown rapidly in recent years. In 1979, the total trade among nations was approximately $3 trillion. Approximately 16 percent of the world's total output is now sold in a different country than that in which it was produced—double the figure of two decades ago. In this chapter, we will analyze the impact of foreign trade on the price, consumption, and domestic production of goods. The effects of trade restrictions, such as tariffs and quotas, will also be considered. International trade is an area of economics where fallacies seem to abound. Indirect effects are often ignored. As we progress, we will discuss several examples of economic nonreasoning. THE COMPOSITION OF THE INTERNATIONAL SECTOR As Exhibit 1 shows, the size of the trade sector varies among nations.
eBook - PDF- Michael Veseth(Author)
- 2014(Publication Date)
- Academic Press(Publisher)
INTERNATIONAL TRADE 303 THE FOREIGN EXCHANGE MARKET International Economics 349 PROBLEMS, GOALS, AND TRADE-OFFS 13 INTERNATIONAL TRADE Preview Why do nations trade? What are the economic effects of trade? Who gains from trade? How? What are tariffs and quotas? What are the arguments for and against trade restrictions? Who really pays the tariff? Should we worry about balance-of-payments problems? Why does the United States have a balance-of-payments deficit? Are automobile import quotas a good idea? 304 INTERNATIONAL TRADE T J L HE LEADERS of the industrialized nations gathered together for a summit conference in Versailles in 1982. Which international issue do you sup-pose caused the most controversy? Peace and war? Nuclear weapons? Human rights? Political alliances? No. The key issue was high U.S. interest rates and their international trade consequences; such is the importance of International Economics. open economy: an economy You live in an open economy. The nations of the world are like so many that trades with other toy boats in a bathtub. Political and economic waves in other countries rock countries. you and your actions send ripples that are felt on faraway foreign shores. closed economy: an The economic models discussed so far in this text have described a closed economy with no interaction economy—international trade and payments have not played a major role in with other countries. the macroeconomic theories discussed thus far. We have ignored just one thing— the rest of the world! It is time to correct this oversight. The next four chapters examine the causes and consequences of international economic interdependence. The United States is such a dominant economic force that the traditional focus on closed economy economics is understandable. Other countries do not take this parochial view, however.
eBook - PDF- Gustav Ranis(Author)
- 2019(Publication Date)
- Taylor & Francis(Publisher)
I shall argue that the time has arrived for much greater conscious analytical attention on the part of economists to the one world of economics: the economic characteristics, behaviour, and performance of the entire global economy. I shall do this not out of visionary zeal afid utopian enthusiasms such as frequently characterize those who speak of global issues; but out of a pragmatic assessment of the limitations of much of economics, as at present usually practiced, in the attainment of Reynolds' aspirations for the discipline. It will become apparent that .there is already quite a lot of world economics being done, though perceptions have not quite caught up with actual practice. The analysis of world economic problems is almost invariably couched in terms of a society of nations in which global problems are synonymous with international and usually intergovernmental 63 64 ones. That part of economic analysis which is concerned with world problems has evolved as International Economics. (A quick glance through my list of currently available textbooks reveals only one which carries world rather than International Economics in its title --Caves and Jones' (1977) World Trade and Payments --but its contents are not differentiated significantly, in this respect, from all of the others.) There are still sound reasons for building an analytical framework upon the fact of separate nation-states: particularly the facts of separate currencies and separate governments, and, to a lesser extent, different cultures (language, tradition, taste, etc.); the classical assumptions of total factor mobility within countries and total immobility between them are not so plausible today, but they have never been more than an analytical convenience --their alteration does not in the slightest hinder orthodox analysis.
- Todd Sandler(Author)
- 2020(Publication Date)
- Taylor & Francis(Publisher)
Still other studies put forth desired resource allocation strategies for nation-states oper-ating in the international economic system (Adelman 1977). Positive research on the international economic system is being generated primarily by economists studying the mechanics of international trade and finance in an attempt to explain how the international economy works. Specific analyses dealt with foreign exchange rate mechanisms, the economic impact of dif-ferent balances in international payments, custom unions (see Chapter 13), and the effects of sundry tariff duties and quotas (Caves and Johnson 1968). Some of this research was directed toward developing economies and focused on the factors that created economic development within the context of the inter-national economic system (see Chapter 10; Higgins 1968; Higgins and Higgins 1979). Additionally, Forrester (1971) pro-vided the theoretical basis for the construction of computer simulations of the world economy for the purpose of forecast-ing alternative futures, while other studies addressed the struc-ture of the world economic system (Leontief 1974). International Political Economy A portion of the normative research on international political economy has been produced by the Cambridge Capital School and the New Left or radical economists. In describing the 22 Jon Cauley Cambridge Capital School, Frey (1978, p. 40) concluded that this approach implies that profit has nothing to do with effi-ciency and hence cannot be justified. Some adherents of this school feel that Marxism is the only solution to a viable inter-national political economy. The New Left's theory is that the international system is imperialistic; that is, capitalist monopo-lies are considered exploitive in seeking and acquiring raw material sources and markets from developing nations. Other scholars have also propounded a new world order based on changing the existing international political economy.
Index pages curate the most relevant extracts from our library of academic textbooks. They’ve been created using an in-house natural language model (NLM), each adding context and meaning to key research topics.
