International Economy

International Economy

1. International relations

   • Adress Economic problem for international purpose
     • Linked to the theory of international trade
       • Its purpose is to study the problems by international economic transactions
         • Advantages of international trade
           • Increased revenues
           • Decreased competition
           • Easier cash-flow management
           • Better risk management

2. Comparative Advantages

   • Relative or comparative cost or another producer
     • Opportunity cost
       • It is the amount of other products that must be lost or sacrificed to obtain a unit of product.

3. Balance of payments

   • Concentration of the values of goods, services or payments in general that a country receives
     • Trade Balance
       • Record of imports and exports of a country in a certain period.
     • Balance of payments
       • Record of all monetary transactions produced between a country and the rest of the world in a given period.