1. International Economics ECN 3860 Dr. Ali R. Moshtagh 2605 Coleman Hall (217) 581-6967 cfam1@eiu.edu Office Hours: –10:00 - 10:50 MWF – 8:30 - 9:30 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