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.
|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.