About This Chapter
Inflows, Outflows, and Restrictions
You probably know that an international business market exists and that a country's exporting power is connected in some way to its prosperity. But are you familiar with specific, in-depth information about exports? Do you know what a 'net export' is? These lessons deal with international trade, including imports and exports.
Chances are good that you're familiar with the concept of imports and exports. The computer you're using right now may have been imported from Asia, and the car you aspire to own some day might come from Europe. These are all goods that are exported from overseas and imported into the U.S. It might not surprise you to find out that imported goods have an impact on domestic prices, but are you familiar with the specifics of this interaction? In these lessons, you'll learn about tariffs and quotas, which are related to imported goods and domestic prices.
Finally, you'll learn about trade restrictions. When it comes to economics, the word 'trade' means something a bit more complicated than the lunchroom sandwich-for-cookies trades you probably performed as a kid. Trade restrictions have serious, far-reaching impacts, including on the foreign labor force.
These lessons should help you understand the ins and outs of the global economy, deepening your understanding of macroeconomics. To make sure you've fully absorbed the presented information, take the quizzes that accompany each video lesson in this chapter.
1. Net Exports, Capital Flows and Trade Balance
Learn what net exports and balance of trade are, how they are calculated, and what influences them. Explore what capital flows are in relation to net exports and trade balance and the importance of these monies in an economy.
2. Financial Markets & Goods Markets
Learn about two of the biggest markets in most economies; the financial and goods markets. Find out what financial markets are and the purpose they serve. Explore the stock market and bond market and see how they are different than the goods market.
3. 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.
4. Trade Restrictions and Foreign Labor
Discover why trade restrictions are sometimes used to combat cheap foreign labor. Learn about outsourcing, job protection, and infant industry strategies.
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Other chapters within the Economics 102: Macroeconomics course
- Scarcity, Choice, and the Production Possibilities Curve
- Comparative Advantage, Specialization and Exchange
- Demand, Supply and Market Equilibrium
- Measuring the Economy
- Inflation Measurement and Adjustment
- Understanding Unemployment
- Aggregate Demand and Supply
- Macroeconomic Equilibrium
- Inflation and Unemployment
- Economic Growth and Productivity
- Money, Banking and Financial Markets
- Central Bank and the Money Supply
- Fiscal and Monetary Policies
- Foreign Exchange and the Balance of Payments
- Studying for Economics 102