1. International Economics
3rd year International Business
Associate Professor Ivar Bredesen
Room Y-349

2. International Economics
International Economics - economic interdependence among nations
Flow of goods, services and payments between a nation and the rest of the world, and the effects on the nations welfare

3. International Economics
Specific subjects
International trade theory. The basis for trade and the gains from trade
International trade policy. The reasons for and the effects of trade restrictions
Balance of payments. A nations total receipts and total payments to the rest of the world

4. International Economics
Specific subjects, contd.
Foreign exchange markets. Exchange of one national currency for another
Open economy macroeconomics. Stabilisation policies in the open economy

5. International Economics
Current International Economic Problems
Trade protectionism in Industrial Countries
Excessive fluctuations and large disequilibria in exchange rates
Financial crises in emerging market economies
High structural unemployment in Europe
Restructuring problems in Transition Economies
Deep poverty in many developing countries

6. Example - protectionism
In March 2002, George Bush imposed import taxes of up to 30 % on steel
What is happening inside the US? Who wins and who loses?
What happens outside the US?

7. International Economics http://highered. mcgraw-hill

8. International Economics
The course will cover the following
International Trade Theory
Chapter 2 - 6
International Trade Policy
Chapter ,