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International Economics

  • Prof: Lars Börner
  • Zeiten: Mi, 14-16

Trade

History:

  • international trade steadily rising until 2009
    • first wave oif "globalization" around 1900
    • and second wave at the start of the '80s
  • only interrupted during recessions

Gains from Trade

Trade = mutual benefits, developed by Ricardo

  • specialization = comparative advantage
  • abundant resources can be exported
  • Intertemporal trade (lending / borrowing)

But:

  • particular groups affected = losers of globalization
    • i.e workers compete with workers in other regions
  • creates inequality!

Patterns of Trade

describes flow of goods

  • differences in climate and resources
  • labor productivity
  • relative supply (labor, capital, land)

Policys on Trade

  • Tariffs
  • Quotas
  • Export subsidies
  • other (product regulations...)

Finance

  • trade involves monetary flows
  • exchange of financial goods = can make better off

Balance of Payments

Measurement of Financial Assets (Inflow / Outflow)

Official Settlements balance: measure of balance of funds central banks uses for international payments

Exchange Rate

how much domestic currency exchanged for international currency

  • import of goods
  • export of goods

Exam

  • 10 Easy Questions (1 Point)
  • 18 Medium Questions (4 Points)
  • 2 Difficult Questions (9 Points)