INTER-GLOBAL COLLEGE FOUNDATION, INC.

Bocohan, Lucena City

CUSTOMS ADMINISTRATION DEPARTMENT

SANGALANG, Rose Ann U. EC-01

BSCA III - Logistics Activity 1

Questions:

1. Give your understanding about International Economics.

International Economics is concerned with the manufacturing, transportation, and utilization of
products and services, as well as the impacts of international commerce, investment, and
borrowing and lending.

2. Explain the two(2) subfields of International Economics.

International Trade is largely concerned with countries' economic interdependence. In an
essence, it is concerned with the flow of products, services, and payments between one
country and the rest of the globe, as well as the policies aimed at controlling this flow and
the impact of this flow on the welfare of that country. The goal of an international trade is
to comprehend the consequences of international commerce on citizens and
organizations, as well as the impacts of changes in trade laws and other economic
situation. It examines the economic interactions that exist between customers, businesses,
factory owners, and the authorities.
International Finance concerns with financial interactions between nations, such as cross-
border capital flows, exchange rates, responses to global financial crises, and economic
shock transmission. It focuses on the interrelationships between aggregate economic
variables such as GDP, unemployment rates, inflation rates, trade balances, currency
rates, and interest rates, among others. This branch of economics extends fundamental
macroeconomics to incorporate international trade.