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International Economics (IECO) major is grounded in belief that the economic analysis is essential to understanding of the modern world affairs. With decreasing the costs of transporting goods and the information, the market forces, which guide international flow of the goods, people, assets, information and technology, are becoming a dominant factor in process of the globalization as well as in the international conflicts. For example, when the markets link countries, the domestic policies such as subsidies and environmental regulation in one country affect welfare of the other countries. The integrating force of market is redefining the boundaries beyond those of traditional nation shape.

Economics is a social science that studies behavior of the social systems - such as corporations, markets, markets, legislatures, international institutions and even the families - through lens of a integrated analytical framework. That framework is built on premise that individuals have the goals and the pursue those goals, subject to constraints of technology, resources and the institutional setting.

The applications of this approach to the international issues are myriad, covering topics such as the trade policy, economic growth, international economic organizations and development, financial crises, international financial markets, international migration, international policy coordination, economic integration, transition to market economies, international political economy, production standards and global environment, international business, multinational corporations and banking, and regional economies.


The economic theory of the international trade differs from remainder of the economic theory mainly because of the comparatively limited international mobility of capital and the labor. In that respect, it would appear to differ in degree rather than in principle from trade between the remote regions in one country. Thus methodology of the international trade economics differs tiny from that of remainder of the economics. However, direction of the academic research on subject has been influenced by fact that governments have often sought to impose the restrictions upon international trade, and motive for development of the trade theory has often been a wish to determine consequences of such boundaries.

The branch of trade theory which is conventionally categorized as "classical" consists generally of the application of deductive logic, originating with the Ricardo's Theory of the Comparative Advantage and developing into a range of the theorems that depend for their practical value upon realism of their postulates.


The main purpose of the economic theory in common is to explain and predict. That is, the economic theory abstracts from details surroundings an economic event in the order to isolate few variables and the relationships deemed the most important in explaining and predicting and event. Along these lines, the international economic theory usually assumes two-nations, two-commodity and the two-factor world. It further assumes no trade limitations to start with, the perfect mobility of factors within nations but no international mobility, the perfect competition in the entire commodity and the factor markets and no transportation expenses.

These assumptions may seem unduly preventive. However, most of conclusions reached on basis of these simplifying assumptions grasp even when they are relaxed to deal with a world of more than two nations, the two commodities, and the two factors, and with a world where there is some international mobility of the factors, transportation costs, imperfect competition and the trade restrictions.


The discussion of most significant international economic problems or the challenges facing world is very significant. These are problems that study of the international economic theories and the policies can help us understand an evaluate the suggestions for their declaration. The mainly serious international trade problems facing by the world today is rising the trade protectionism in advance countries.

The other serious international economic problems are growing the international competition from the China and fear of job losses in the United States and the other advance countries; the high structural unemployment and slow growth in the Europe, and need of restructuring in the Japan; the financial crises in promising market economies; the restructuring challenges of the transition economies, and the deep scarcity in many developing countries.

1. The trade Protectionism in Advance Countries.

2. Increasing the International Competition from China and the Fear of Job Losses in United States and the other Advance Countries.

3. Find out the more from UK Essays here.

4. The High Structural Unemployment and the Slow Growth in Europe and Need for the Restructuring in Japan.

5. The Financial Crises in Emerging the Market Economies.

6. Restructuring Challenges of the Transition Economies.

7. The deep Poverty in the Many Developing Countries.


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