International+Economics

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 * Section 3: International Economics**

**3.1 International Trade**

 * Free Trade - Reference:**
 * benefits of trade
 * absolute and comparative advantage
 * WTO objectives


 * Trade Protection**
 * Types of protectionism
 * Tariffs
 * Quotas
 * Subsidies
 * Voluntary Export Restraints (VERs)
 * Administrative obstacles
 * Health and safety standards
 * Environmental standards
 * Arguments for protectionism
 * Infant industry argument
 * Efforts of a developing country to diversify
 * Protection of employment
 * Source of government revenue
 * Strategic arguments
 * Means to overcome a balance of payments disequilibrium
 * Anti-dumping
 * Arguments against protectionism
 * Inefficiency of resource allocation
 * Costs of long-run reliance on protectionist methods
 * Increased prices of goods and services to consumers
 * The cost effect of protected imports on export competitiveness

**3.2 Exchange Rates**

 * Floating exchange rate**
 * determining freely floating exchange rate
 * causes of changes in exchange rate
 * effects of changes in exchange rate


 * Government intervention**
 * fixed exchange rate
 * managed exchange rate
 * evaluation of different systems

**3.3 Balance of Payments**

 * Current account deficit
 * Current account surpluses
 * balance of trade
 * invisible balance
 * Capital account

**3.4 Economic integration**

 * Trade agreements
 * Trading blocs
 * Monetary union