International Economics

International economics deals with economic and financial interdependence among countries of the world. It explains the flow of goods, services, capital and labour between a country and the rest of the world. The study of international business raises awareness of the inter-relatedness of a country''s economic policies and practices with another. International finance is the study of monetary transactions between two or more countries, focusing on areas such as foreign investment, foreign borrowings and foreign aid. Increased globalization has magnified the importance of international finance.This book explains various aspects of international economics in simple, lucid and non-technical language. It would connect teachers and students of the subject to the basic concepts, components and processes of international economics. The book contains 32 chapters which have been organized into 3 parts. Part I (chapters 1 to 13) is titled International Trade. It explains and examines various theories of international trade propounded by economists from time to time, viz. absolute advantage theory of trade by Adam Smith, comparative advantage theory of trade by David Ricardo, and Heckscher-Ohlin theory of trade by Eli Heckscher and Bertil Ohlin. Other topics included in this part are balance of payments, theories of exchange rate determination, foreign exchange market, foreign exchange reserves, terms of trade, tariff and non-tariff trade barriers, regional and mega multilateral trade agreements, World Trade Organization (WTO), and trade and environment. Part II (chapters 14 to 23) is titled International Business. It includes the following topics: globalization and the rejection of decoupling hypothesis, growth of multinational corporations (MNCs), location of industry, mergers and acquisitions (M&A), intellectual property rights (IPRs), international migration of labour, internet and industry, corporate social responsibility (CSR), industrial activities and environmental pollution, and international economic problems and challenges. Part III (chapters 24 to 32) is titled International Finance. It deals with financial system and financial economics, international financial crises, regional and international financial integration, foreign direct investment (FDI), tax incentives to attract FDI, portfolio theory and foreign portfolio investment, foreign borrowings and foreign aid, World Bank and its affiliates, and International Monetary Fund (IMF).