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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.

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    BrainMass Categories within International Economies


    Solutions: 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

    Solutions: 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

    Solutions: 115

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

    International Financial Crisis

    Solutions: 30

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


    European Union

    Solutions: 41

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

    Comparative Advantage

    Solutions: 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

    Solutions: 19

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

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