Unit 7: International Trade
Aside from the exchange of goods and services on a global level, trade among countries serves many functions. For example, it trading partners make a greater variety of goods available. In short, these gains from trade promote the concepts of specialization, comparative advantage, and export activities. Trade also facilitates movement and exchange of foreign currencies, such as when imports are paid for in the unit of the exporting country's currency.
However, international trade can be an emotional and politically-charged issue, that cuts across microeconomics and macroeconomics. In this unit we examine trade from an economic, rather than political, perspective. We direct our attention to trade balances, exchange rates, and other aspects of a country's macroeconomic performance.
Completing this unit should take you approximately 3 hours.
7.1: Introduction to Trade
7.2: Absolute Advantage and Comparative Advantage
7.3: Tariffs and Quotas
Unit 7 Discussion and Assessment