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International Economies

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, and physical goods and services like 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 Economies

Integration

Postings: 50

Economic integration is the unification of economic policies of different nations or states through the elimination of tariff or non tariff barriers of trade.

International Labour Organization

Postings: 10

The International Labour Organization (ILO) is a United Nations organization created in 1919 that focuses on labour issues, specifically international labour standards.

International Investment

Postings: 117

An international investment agreement is a type of treaty between countries that address issues relevant to cross border investments.

International Financial Crisis

Postings: 30

The financial crisis of 2007 is said to be the worst financial crisis since the Great Depression of the 30s.

European Union

Postings: 40

The European Union is a political and economic union comprised of twenty-seven member states, located mostly in Europe.

Comparative Advantage

Postings: 213

Comparative advantage was developed by David Ricardo and is when a country can produce a certain good with less forgone output of another good than another country.

Absolute Advantage

Postings: 19

Absolute advantage is when a party can produce more of a good or service using the same amount of inputs as its competitors.

Direct Quote and Exchange Rates

1. Assume you are a U.S. citizen and currently you can exchange $152 (USD) for 114 Euro. What is the direct quote relating the USD to the Euro? 2. Assume you are a U.S. citizen and currently you can exchange $180(USD) for 125 GBP (British Pounds). What is the indirect quote relating the USD to the GBP? 3. You are given thr

Australian and US dollar exchange rate

Summarize the movements in the exchange rate of the Australian dollar against the US dollar over the last 36 months. Using appropriate models, explain the various factors which have caused these movements. Considering current national and international economic conditions, critically discuss the impacts of the overall exchange r

Tariff

If offshore assembly provisions were extended to include more goods, what would this do to the actual level of protection provided by a country's nominal tariff schedule? Explain. If the extension of the provisions is made to final goods but not to intermediate goods, what would this do to the effective rate of protection (ERP)

Finance Questions - Part 1

1) EMC has preferred stock outstanding which pays a dividend of $5.00 at the end of each year. This stock was issued in perpetuity and has no maturity date. EMC's preferred stock sells for $60 per share. Calculate this preferred stock's required rate of return SHOW ALL WORK. 2) Flanigan Corporation has just pai

Stock Dividends

Stock Dividends The owner's equity accounts for Hexagon International are shown here: Common stock ($1 par value) $10,000 Capital surplus $ 180,000 Retained earnings $ 586,500 Total owner's equity $ 776,500 a. If Hexagon stock currently sells for $25 per share and a 10% stoc