About This Chapter
CSET Business - International Economics: Chapter Summary
Do you understand how currency changes can impact imports and exports? Or how fiscal and monetary policies can affect the exchange rate? If not, you might want to complete this chapter to increase your knowledge about international economics, one of several economic topics covered on the California Subject Examinations for Teachers (CSET) Business Subtest II. By the end of this chapter, you should be able to answer the questions above, while also being proficient in the following areas:
- Gains from trade and the benefit of specialization
- Factors affecting international trade, including trade agreements and trading systems
- Trade barriers
- Measuring foreign trade
- Achieving trade balance
- Supply and demand for currency
- Currency appreciation and depreciation
- Ethics in international economics
CSET Business - International Economics Objectives
The CSET Business Subtest II, part of the CSET Business Single Subject Exam for aspiring high school business teachers in California, measures your proficiency in accounting, finance and economics. This 40-multiple-choice-question test includes 15 questions on economics as well as one economics-focused constructed-response question.
Each lesson in this chapter on international economics includes a video and a self-assessment test. You can complete these components in whatever order you choose; however, you might find it most beneficial to take the quiz both before and after viewing each video to make sure you've fully absorbed the material.
1. Gains From Trade and the Benefit of Specialization
Explore one of the most widely accepted ideas in economics - the idea that nations benefit from specialization and exchange, reaping gains from trade.
2. Tariffs and Quotas: Effects on Imported Goods and Domestic Prices
Explore what tariffs and quotas are and what effect they can have on the supply of imported goods. Find out how these two economic tactics can influence the prices you pay for many of the everyday items you may purchase.
3. Balance of Payments: Current Account & Measuring Foreign Trade
Find out what the current account is and the four main foreign trade components that it is comprised of. Similar to your bank account, learn how the current account is measured and what a deficit and surplus mean when talking about this economic indicator.
4. Balance of Payments with Financial Accounts: Measuring Foreign Trade
Learn about the balance of payments and the two key components that make it up. Discover what the financial/capital account is and how it relates to foreign trade and surpluses and deficits.
5. Achieving Trade Balance: Trade Deficit and Surplus Examples
Find out what trade balance, trade deficit, and trade surplus are. Learn about some recent examples that help clarify trade deficit and surplus. Explore what countries have a surplus and what countries have a deficit.
6. How Currency Changes Affect Imports and Exports
Learn about how currency changes can affect imports and exports. Find out how this affects you. Discover what happens when a dollar is strong compared to other currencies and what happens when it is weak.
7. Foreign Currency Exchange: Supply and Demand for Currency
In this lesson, you'll learn why money from different countries has different values of exchange. We'll cover the supply and demand for currencies and how changes in supply and demand can affect the exchange rates between currencies.
8. 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.
9. Currency Appreciation & Depreciation: Effects of Exchange Rate Changes
Find out how changes in the exchange rate can affect the economy and your own individual situation. Discover how these currency changes can increase and decrease your purchasing power and standard of living.
10. How Fiscal and Monetary Policies Affect the Exchange Rate
Discover how fiscal and monetary policy can affect the exchange rate and ultimately the amount of money it costs you to buy goods and services. Find out the three paths that both fiscal and monetary policy can travel to impact the exchange rate.
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Other chapters within the CSET Business Subtest II (176): Practice & Study Guide course
- CSET Business - Accounting Principles
- CSET Business - Principles of Finance
- CSET Business - Personal Finance
- CSET Business - Economic Concepts
- CSET Business - Microeconomics
- CSET Business - Macroeconomics: General Concepts
- CSET Business - Macroeconomics: Unemployment & Inflation
- CSET Business - Macroeconomics: Money, Federal Reserve System & Banking
- CSET Business - Macroeconomics: Fiscal and Monetary Policy
- CSET Business Subtest 2 Flashcards