Objectives of the Chapter

While it is true that international economics is different, your other courses in economics were not wasted! Both the microeconomic and macroeconomic theories that you have learned in the past will be useful in analyzing the different predicaments faced when dealing with interactions of economic actors across national borders. You will be able to discuss issues ranging from rumors and currency speculation to political lobbyists and trade wars.

If you want to keep abreast of international economic developments in the real world, you should regularly read the business section of a major daily paper. The Wall Street Journal, the weekly magazine The Economist, and the London daily Financial Times provide the most thorough coverage and look really impressive sitting on your desk. Most offer students discounted subscription rates.

At the end of your course of study you should be able to understand current issues related to foreign trade and international finance and to critically evaluate the debate around the policy options available to your country’s government. While we can’t guarantee that this will make you a better person, it will make you a better informed person.