New PDF release: An Introduction to International Economics: New Perspectives

By Kenneth A. Reinert

ISBN-10: 0521177103

ISBN-13: 9780521177108

ISBN-10: 1107003571

ISBN-13: 9781107003576

This publication is designed for a one-semester or two-semester direction in foreign economics, basically focusing on non-economics majors and courses in company, diplomacy, public coverage, and improvement reports. it's been written to make overseas economics available to vast scholar audiences. The publication assumes a minimum history in microeconomics and arithmetic and is going past the standard trade-finance dichotomy to offer equivalent therapy to 4 ''windows'' at the global economic system: foreign alternate, foreign construction, foreign finance, and foreign improvement. It takes a practitioner standpoint instead of a typical educational view, introducing the coed to the cloth they should develop into powerful analysts in overseas financial coverage. the website for the textual content will be came upon at

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Sample text

14 WINDOWS ON THE WORLD ECONOMY 4. What is the difference between international trade and foreign direct investment? 5. What is the difference between international trade and international finance? 6. Identify one way in which the activities of international trade, finance, and production could positively contribute to international development. Identify one way in which these activities could negatively contribute to international development. How could you demonstrate that the activities have either a positive or negative impact on development?

In particular, we will assume that the supply curve for Vietnam is farther to the right than the supply curve for Japan, which means that at every price, Vietnam supplies more rice than Japan. Why might this be? One possibility is that Vietnam produces rice using technology superior to that of Japan so that labor productivity in rice production in Vietnam is higher than in Japan. 4 Another possibility is that the prices for inputs used in rice production are lower in Vietnam than in Japan. This, in turn, could reflect the fact that Vietnam is more abundantly endowed with rice production factors (available land and agricultural labor) than Japan.

Currencies. Most (not all) countries in the world economy have a separate currency in which transactions with other countries take place through foreign exchanges. 7. Financial assets. Both countries and firms issue various types of financial assets, denominated in a particular currency, that can be bought to be part of wealth management portfolios by other countries, other firms, and residents of any country. These are the seven analytical elements that we will draw upon in various combinations as we move through the chapters of this book.

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An Introduction to International Economics: New Perspectives on the World Economy by Kenneth A. Reinert

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