About This Chapter
Basics of International Economics - Chapter Summary
The lessons within this chapter examines fundamental concepts within the subject of international economics, providing you with a solid foundation of knowledge to apply in the classroom. Topics fleshed out include:
- Comparative and absolute advantage
- Specialization and exchange
- Trade protectionism and exchange rates
- The global economy
- National and international trade policies
With both a video and transcript of the content included with each lesson, you'll be able to choose the mode of learning you're most comfortable with. After every lesson, you can make sure you understood the material by means of a practice quiz that can be taken and re-taken at your discretion.
1. Comparative Advantage, Specialization & Exchange
Companies and individuals are often faced with the question of, 'What should we do?' This lesson examines comparative advantage, a valuable economic concept that helps firms and people determine how to focus their efforts.
2. Differentiating between Comparative and Absolute Advantage
International trade is embraced by countries due to many benefits. In this lesson, we will discuss the differences between comparative and absolute advantage and the importance of specializing in production.
3. Advantages and Disadvantages of Trade Protectionism
Countries want to win the game of international trade by exporting more than they import. Some countries pursue trade protectionism to do this. In this lesson, you'll learn about the advantages and disadvantages of this strategy and related concepts.
4. Exchange Rate: Determination and Conversion Across Countries
Understand what exchange rates are and the different types that can be used by governments and countries. See how they operate and how the conversion process works across countries.
5. The Global Economy: Advantages, Expansion & Impact
This lesson will explain the concept of economic globalization. We will look at both its positive and negative effects while also highlighting the terms 'import,' 'export,' and 'capital flight.'
6. National Trade Policies: Economic Impact & Market Share
This lesson will explain national trade policies. In doing so, it will highlight reciprocity and most-favored-nation status. It will also explain non-tariff restrictions and market share.
7. International Trade Regulations & Restrictions
Importing and exporting are vital elements to a healthy U.S. economy. Businesses should be familiar with international laws regarding trade. This lesson defines imports and exports and discusses international trade regulations and restrictions.
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