International Business Enviroment

International economics deal with the economic interdependence among various countries and includes the effects of such interdependence and the factors which affect it. NEED : because FOP are generally immobile between the countries .Nature and Scope of Int’l economics  Introduction   International economics deal with those international forces which affect domestic economic conditions as well as those which shape the economic relationship between countries. world economic integration and transition.1.

Nature and Scope of Int’l economics  a) b)  Theoretical and Descriptive part Theory Part Pure theory of Int’l trade International monetary theory Descriptive international economics .1.

factor. product prices and income distribution Effect of trade on economic growth and vice versa .Nature and Scope of Int’l economics  a) b) 1. Pure Theory c) d) e) f) The pure theory covers the following.1. consumption and distribution of income Effect of trade on relative factor prices and product prices Gains from trade and distribution of gains Effect of trade barriers on trade. patterns of trade Effect of trade on production. Causes of trade.

1.Nature and Scope of Int’l economics  a) b) c) d) 2. Matters pertaining to BOP and IMS Causes and methods of correction of BOP Disequilibria Exchange rate determination International liquidity Relation b/w BOP position and other macro economic variables etc . Int’l monetary theory e) f) Int’l monetary theory covers.

Regional development banks etc .Nature and Scope of Int’l economics  a) Descriptive b) c) Descriptive international economics Concerned about international economic transactions as they happen and of institutional environment in which they take place Covers international trade flow of goods and services. flow of international financial and other resources Covers international financial organizations such as WTO.1. UNCTAD. World Bank. IMF.

Sign up to vote on this title
UsefulNot useful