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1、International Economics,Chapter 1 Introduction 1.1 Importance of International Economics Many products we use, or parts of them, were in fact produced abroad. To travel abroad, we need to exchange our currency for the designated countries currencies. Problems like legal and illegal migration, operat
2、ion of multinational corporations, the risk of complete economic collapse and deep poverty in the poorest countries of the world. Knowledge of international economics is necessary to understand what goes on in the world of today and to be informed consumers, citizens and voters. On a more practical
3、level, the study of international economics is required for numerous jobs in multinational corporations, international banking, government agencies like the United Nations, the World Bank, and the International Monetary Fund,Task 1: looking at case study 1-1and 1-2 for more understanding of internat
4、ional economics 1.2 International Trade and the Nations Standard of Living Task 2: Looking at the Figure on page 4 of the text book and understand the concept of interdependence. Interdependence (相互依存） refers to the economic relationship among nations. It is roughly measured by the ratio of their im
5、ports and exports of goods and services to their gross domestic product( GDP) The imports and exports as a percentage of GDP are much larger for smaller industrial and developing countries than they are for the United States. Question 1: Do you think that international trade is still necessary for t
6、he United States though it relies to a relatively small extent on international trade? And list the reasons by finding your answers on page 5.,Question 2 Studying Figure 1.2 and how do you know the economic interdependence among nations has been increasing over the years. Question 3 What will happen
7、 if the United States increase the interest rates? Question 4 Illustrate how closely linked the nations in todays world? Task 3: Looking at the case study 1-3 to have a clear idea about the rising importance of international trade to the United States. 1.3 The Subject Matter of International Economi
8、cs International economics deals with international trade theory(国际贸易理论）, international trade policy（国际贸易政策）, the balance of payments（国际收支平衡表） and foreign exchange markets（国际外汇市场）, and open economy macroeconomics（开放宏观经济学）,International trade theory analyzes the basis and gains from trade. Internatio
9、nal trade policy examines the reasons for and effects of trade restrictions and new protectionism (新贸易保护主义） The balance of payments measures a nations total receipts from and the total payments to the rest of the world. Foreign exchange markets are the institutional framework for the exchange of one
10、 national currency for others. Open-economy macroeconomics deals with the mechanisms of adjustment in balance of payments. Microeconomic aspects of international economics deals with individual nations treated as single units and with the price of individual commodities. ( Including international tr
11、ade theory and policies) Macroeconomics aspects of international economics also known as open-economy macroeconomics deals with total receipts and payments, as well as with adjustment and other economic policies that affect the level of national income and the general price of the nation as a whole.
12、,Question 5: Reading the passages on page 8 and conclude the differences between international economic relations and interregional economic relations. 1.4 Purpose of International Economic Theories and Policies The purpose of economic theory in general is to predict and explain. International econo
13、mic theory usually assumes a two-nation, two-commodity and two-factor world. 1.5 Current International Economic Problems The most serious international trade problem facing the world today is the rising protectionism in industrial countries and the tendency for the world to break up into three major
14、 trading blocs. 1.5 A Trade Protectionism in Industrial Countries Question 6: Is trade protectionism beneficial to the nation which adopts it?,1.5B Excessive Fluctuations and Large Disequilibria in Exchange Rates Question 7: What policy is suggested on page 10 to solve the problem of excessive volat
15、ility and disequilibria in exchange rate? 1.5C Financial Crisis in Emerging Market Economy Question 8: Summarize the reasons for financial crisis in these countries. 1.5 D High Structural Unemployment and Slow Growth in Europe and Stagnation in Japan Question 9 What is the labors attitude toward the
16、 problem of jobless? 1.5 E Job Insecurity from Restructuring and Downsizing in the United States Question 10 What are the reasons for downsizing and job insecurity in the United States?,1.5 F Restructuring Problems of Transition Economics 1.5 G Deep Poverty in Many Developing Countries Question 11:Why problems of deep poverty should rise our attention? 1.6 Organization and Methodology of the Text 1.6 A Organization of the Text Four parts: Part One (Chapter 2-7)deals with international
