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International Economics Assignment Help

international economics assignment help

International economics is a branch of economics concerned with the issues and effects of international trade and the international distribution of income.

International Economics Homework Help

The subject is concerned with economic relations between countries based on the fact that resources are mobile, ceteris paribus . Due to its universality as a phenomenon, it concerns all regions of the globe and all forms of political organization, although there are propositions for a possible globalization.

The subject is taught in universities as part of courses in international finance, international politics (international relations) and international economy.

The concept of “economics” was initially developed by Adam Smith, since then it has become one of the most influential subjects on political science.

International economics deals with such topics as exchange rates, market protectionism, import restrictions and international capital movements.

The modern field of International Economics stems from the 1930s work of Jacob Viner for the Institute for Advanced Study in Princeton to the 1988 “Revised” Carnegie-Rochester Conference Series (a quarterly journal) as well as an annual meetings sponsored by The American Economic Association since 1947. The international economics field today is very close to the Interdisciplinary field of International Political Economy, that deals with similar issues and also includes political science, law, regional studies and other related fields.

International economics is a field of study that deals with the economic relations between countries or regions from both perspectives: it involves issues of trade and finance (a question for microeconomics) as well as macro-political issues. It also analyses the impact of foreign policies on international trade and global outlay. The main branches of study in this area is the international trade and finance.

International economics implies an acceptance of the theory of comparative advantage, which states that under free market conditions each country will produce (and export) whatever good or service it can in the most efficient manner (least labor input required), given its endowment of factors of production, no matter how abundant they are globally: this is based on the assumption that all agents act rationally and that markets are competitive. However, actual markets (exporters and importers) may be dominated by monopolies, or government intervention may distort prices. International trade is derived from a situation of comparative advantage; one state benefits by specializing in the production of an export commodity which it can then trade for another commodity (import good) in which it lacks the comparative advantage. The problem with this is, when countries have large economies and there are no barriers to goods crossing borders then a ‘free’ market can be exploited by countries that do have an absolute advantage over other countries .

Examples: United States has an absolute advantage in most goods and services compared to the Caribbean, this means that it will sell more of these goods or services to the Caribbean than selling to other countries. Also if the US sells a lot to the Caribbean they will be able to build up their economy meaning when there is an economic crisis all over the world many people in the US are employed and will have money to spend, this improves the US economy.

“International trade” refers to the exchange of goods between countries over borders; this can be contrasted with “international production”, which would occur if an entire production process occurs within one country. In today’s globalized world, international trade has the benefits of more products to be made available to consumers and lower costs of transportation. In contrast, international trade can introduce a discrepancy between two countries’ comparative advantage and thus benefit some at the expense of others; this is known as “beggar-thy-neighbor” policies, as described by a famous economist of the 1930s John Maynard Keynes (not to be confused with his grand nephew and economic theorist J. M. Keynes).

Macroeconomics is the study of how economies work in general, including their behavior during business cycles…The field of international economics is closely related to international macroeconomics.

Although in principle international economies can behave according to the same economic laws of supply and demand as national economies, several factors make this more complex:

The first issue is the problem of scale, production or consumption often being larger on an international level than on a national level. Global demand for many goods and services can be significantly affected by events in just one country; examples include a revolution in Ukraine or an earthquake in Japan affecting global supply of electronics components or motor cars. In addition to causing economic damage, such events can change the monetary value of all goods in global markets, most drastically affecting trade between countries that were previously allied or trading partners.

Secondly, international trade and finance is shaped by government policies, as economic interdependence has increased; examples include: import quotas (shown below), tariffs on imported goods (taxes) and global financial commitments (IMF).

In reality, there is a continuum rather than a division between international trade and international finance.

It is clear that economic decisions do not occur in isolation, but involve many nations: for example the number and size of foreign investments are affected by expectations about exchange rates, which in turn are influenced by political relations such as a trade embargo.

This overview of the economics of international trade and finance is necessarily imprecise; individual contribution to international economic growth abound, such as remittances, sweat-equity or formal Investment (capital). International business comprises a variety of different types of business activities including: foreign direct investment, outsourcing, franchising etc. Expansion by multinational corporations (MNCs) has occurred across the globe, and this expansion contributes to international trade in several different ways.

When a business expands by setting up branches within other countries it is called foreign direct investment (FDI). FDI is defined as ownership or controlling interest by parent companies of an enterprise operating outside its home country. This type of international investment involves management control and there is a special branch of economics, called the multinational enterprise (MNE) theory, that studies it.

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International Economics Assignment Help and its growing importance

International economics continues to commandeer influence as an influential field of study thanks to the rapid integration of global economic markets. As already mentioned, an increasing number of consumers, businesses, and governments are waking up to the reality that what is happening around the world has a direct influence on their lives.

Thanks to international economics, consumers in the streets of Singapore can walk into their local shops and buy goods and services from the United States. Today, local businesses brace fierce competition from foreign companies, eliciting the trade wars.

Also, the advance in the transport network and telecommunications brought the world closer. But it’s the internet that has changed the nature of service delivery and how we order products. And now, we are in another face of digital currencies, which is transforming the money transfer market, and the national intelligence, which is breaking the human limits.

In general, International Economics studies trade between countries, with goods, services, and money flowing across borders. It interests itself with trade quotas, exchange rates, foreign direct investments, and many more.

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