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These flashcards cover key concepts, definitions, and important distinctions in the field of international economics as outlined in the lecture notes.
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What is international economics?
International economics is the field that deals with economic interactions between countries and international institutions, addressing issues like trade growth and financial crises.
Define globalization.
Globalization is the increased interconnectedness and interdependence of peoples and countries, involving fast flows of goods, services, finance, people, and ideas.
What are the four main aspects of study in international economics?
International trade, international production, international finance, and international development.
What is the difference between domestic trade and international trade?
Domestic trade occurs within a country's borders, while international trade involves economic activities that cross country borders.
What are imports?
Imports are goods and services purchased from another country, resulting in an outflow of funds from the purchasing country.
What are exports?
Exports are goods and services produced in one country and sold to buyers in another country.
List two benefits of importing goods.
Importing can increase profit margins and provide high-quality products at lower prices.
What role does international trade play in an economy?
International trade raises the standard of living, generates employment, ensures quality goods, and provides multiple choices to consumers.
What are some advantages of international trade?
Optimal resource use, availability of diverse goods, stability in prices, increased efficiency, and industrialization.
What is a tariff?
A tariff is a tax on imported goods or services intended to raise tax revenues and reduce consumption of imported items.