International economics is a branch of economics that studies the economic interactions between countries, focusing on the patterns and consequences of international trade, investment, and financial flows.
It aims to understand and analyze the economic relationships, policies, and behaviors that arise from these cross-border transactions.
International economics is typically divided into two main subfields: international trade and international finance.
1. International Trade
This subfield deals with the exchange of goods and services between countries, exploring the reasons for trade, the gains from trade, and the impact of various trade policies.
Key topics in international trade include comparative advantage, trade barriers, trade agreements, and the effects of globalization on trade patterns and economic growth.
2. International Finance
This subfield focuses on the flow of financial resources, such as capital and currencies, across international borders.
It examines the determination of exchange rates, the balance of payments, and the effects of international financial flows on economic stability and growth.
Key topics in international finance include exchange rate regimes, foreign exchange markets, international capital flows, and global financial crises.