International Trade and the Balance of Payments

Note: the first time you go through each of these topics you should click on the following items in sequence. 

Read hypertext selection

Go to the lecture
Part "a"
Part "b"

Take a quick quiz 

Work a problem

Discuss an issue



Since its beginnings in the 18th century economics has been concerned with analyzing the forces governing the economic relations among different countries. In this topic we survey the field of international trade, beginning with the still relevant classical theory of comparative advantage, the methods used to restrict or limit trade, and going on to introduce some basic concepts relating to the measurement of real and monetary interactions among buyers and sellers located in different countries. 


  • To introduce the classical theory of trade
  • To explain how tariffs and other instruments are used to restrict trade
  • To show how trade and international monetary flows are conceptualized and measured.

Copyright 1999 K.J. Rea