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)