Analysis of the meaning of international economics
International economics, like the other major fields of economics, is made up of many different theories and models, some more mathematical than others. It assesses the impact of trade and investment between countries, including international trade agreements or current policies that may affect such trade and overall economic growth. The international economy can also be considered as part of the field of politics and international relations .
Predominantly, the international economy is divided into two distinct areas: international trade and international finance.
International trade examines how goods and services move across international borders applying a microeconomic framework that includes modeling and analysis. As such, it is not uncommon, when examining international trade issues, to take into account factors such as :
Supply and demand;
The behavior of the market and the customer; Analysis of the meaning of international economics
The differences between the trade policies of the countries; Y
The commercial quotas or commercial negotiations in force and their consequences.
International relations and the economy are closely related.
International finance, on the other hand, studies how capital flows across international borders by applying macroeconomic principles. The topics that embrace international finance are:
Exchange rates and their movements, including the differences between fixed and variable exchange rates;
The balance of trade and payments between economies;
GDP, inflation and employment rates, in a comparative international context.
Since much of the fundamentals of international economics are based on principles that you would already be familiar with from having studied microeconomics and macroeconomics, it will not be too difficult for you to quickly learn the basics of international economics.