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International Economics

International economics describes the economic transactions between two or more regions or countries that are done for either profit or political reasons. These transactions include economic resources such as capital, skills, labour, and physical goods and services such as banking and construction.

In international business, a company with multiple transactions and operations within a country is called a multinational enterprise (MNE). McDonald’s and General Motors are examples of multinational enterprises because they operate in many different national markets. International transactions provide companies with the possibility to increase sale revenue with their expansion, acquire different resources, and acquire revenue from multiple sources.

What international economics does is predict the transactions of production, investment, and trade between countries. The changes in wages and income are examples of how international economics affects members of the economy individually. The foreign trade market is currently one of the largest markets in the world which shows the importance of studying international economics.

The government is involved in international economics because of government and tax policies that are implemented to control trade and investment. Comparative advantage is a commonly used tool for predicting the patterns of international production. International demand is driven by income and tastes and the interaction with international supply determines the production and trade.

Categories within International Economics

Developed vs. Developing Country

Developed vs. Developing Country You have been recently hired by a multinational firm that manufactures airplanes parts. They are interested in investing in a new factory. However, the CEO is unsure of where they should invest. The CEO would like to either invest in a developed or a developing country and your input is valuab

Fixed & Floating exchange policies

Assume that you are an economic adviser and your focus is on understanding the different types of exchange rate systems. You have been hired to understand the shifts in monetary policy and their influence on monetary policy. The only causes of fluctuations in stock prices are unexpected shifts in monetary policies. Now, your tas

China: Employment to Rural Workers

You are an economic adviser to the government of China in 2008. The country has a current account surplus and is facing gathering inflationary pressures. The current account surplus is large, in excess of 9% of GDP. Additionally, China currently provides a rather low level of government services to its people. China's government

international investment position data/ GDP data

Go to the BEA website ( and download the annual data for the United States' end-of-year international investment position (IIP) from 1976 to the present. Next, download the annual data for the United States' nominal Gross Domestic Product (GDP), also from 1976 to the present. Compare the annual ratio of the II

Infant Industry Argument

Identify which countries have benefited the most from international trade over the last few decades. What policies do these countries have in common? Do their experiences lend support to the infant industry argument or argue against it? To support your answer, you will want to use academic sources to help research various countr

Strategic Trade Policy

Suppose the U.S. government was able to determine which industries would grow the most rapidly over the next 20 years. Explain why this doesn't necessarily mean there should be a policy to support the growth of these industries. Analyze the disadvantages of engaging in strategic trade policy, even in cases where it can be slow t

Nontraded Services Comparative Advantage

In the manufacturing sector, Japanese labor productivity is roughly the same as that of the United States (higher in some industries, lower in others). However, the United States is still considerably more productive in the service sector, with most services being nontraded. Some analysts have argued that this poses a problem fo

The advantage of free trade

In order to protect consumers, the United States has taken action to restrict the imports of certain Chinese goods, such as toys that contain lead and seafood that does not meet certain health standards. Some say that this is a double standard. If the United States is willing to restrict goods on these grounds, shouldn't there b

Integration in footwear and apparel industry

Labor-intensive firms, mainly in the apparel and footwear industries, choose to outsource production to countries where labor is abundant (primarily Southeast Asia and the Caribbean). However, those firms do not integrate with their suppliers there. Firms that utilize a more capital-intensive industry, on the other hand, choose

Investment Bonds/Fixed Income Investments

Investment Bonds/Fixed Income Investments Part I: Bond valuation is an important aspect of investment strategies for fixed income securities. To value a security, we discount its expected cash flows by appropriate discount rate. Suppose Jagdambay manufacturing sells a bond paying a coupon rate of 5% per year with pa

Basis of International Trade

Peter Pundit, an economics reporter, states that the European Union (EU) is increasing its productivity very rapidly in all industries. He claims that this productivity advance is so rapid that output from the EU in these industries will soon exceed that of the United States and, as a result, the United States will no longer ben

Thailand Coup D'etat: Economic Impact

Describe the Thailand coup d'etat effects on: - The General Economy - GDP and Other Indicators - Tourisms Sector - Export and Import Sector - Currency - Infrastructure Projects - Foreign Investments - Economic Policies Please include references.

Foreign Exchange Rate Determinants

Identify the long-run determinants of exchange rates and the short-run determinants of exchange rates. In a free market, what determines exchange rates in the long-run and the short-run?

Forward Exchange Market Benefits

Using an example, explain how traders benefit from the forward exchange market. Please ensure it's at least 210 words, APA format and provide references.

International Economics: Country Risk Analysis

In recent years, "country risk analysis" has become an important part of international business. What is meant by "country risk"? Explain the factors that are involved in a country risk analysis.

Anti-Dumping Laws

Respond to the following statement: "Anti-dumping laws are good for a nation."

Tariff and non-tariff trade barriers

 Define tariff and the different types of tariffs.  Identify and discuss the major nontariff barriers to trade.  Justify the use of trade barriers.  Using a real life example, explain the effects tariffs and other trade barriers have had on social welfare in a country of your choosing.  Identify any unfa

Factor-Endowment Trade theory

The factor-endowment theory suggests you should trade in the products that you can make from the production factors and resources you naturally possess. Depending on the country in which you live, identify in what your country should trade and what your country should import. Explain your answer in as much detail as possible.

Trade Among Islamic Countries

Is a multilateral trading system based on World Trade Organization "OIC" rules preferable to trade regulated by bilateral treaties between (Arab & Muslim) governments? Why is trade between member countries of the Organization of the Islamic Cooperation is so limited?

G20: interest of Islamic countries

What could support the arguments of the role Saudi Arabia, Turkey, and Indonesia play to promote the interests of the Islamic World within the G20?

International Business in UAE, China and Mexico

The Countries I have chosen are UAE, China and Mexico and I need some help answering these questions: •Can you have a U.S. management style in these countries? Explain •How are their economic systems classified? Explain why they are classified as such.