International Economics

1
International Economics

• ECN 3860
• Dr. Ali R. Moshtagh
• 2605 Coleman Hall
• [phone]
• cfam1_at_eiu.edu
• Office Hours
• 1000 - 1050 MWF
• 830 - 930 TR

2
International Economics

• International Economics concerns the flow of
  commodities, services, and productive factors
  (capital and labor) across national boundaries.

3
International Transactions

• Trade in commodities refers to imports and
  exports of merchandise
• Trade in services involves such activities as
  shipping, insurance, travel, or tourist services
  performed by companies of one country for the
  residents of another

4
International Transactions

• Capital flows represent
• the establishment of manufacturing plants in
  foreign countries or
• the acquisition of foreign bonds, stocks, and
  bank accounts.
• Labor flows describe the international migration
  of workers.

5
Why Nations Trade

• International trade provides us with a variety of
  goods and services from other countries
• International trade promotes specialization and
  efficiency in production and
• International trade provides a source of income
  and employment for the countries involved

6
Domestic Vs. International Economic Relations

• National boundaries have profound implications
  for the conduct of trade
• Exchange Rates
• Commercial Policy
• Different Domestic Policies
• Relative Immobility of Productive Factors
• Statistical Data and
• Marketing Considerations