By Kenneth A. Reinert
This booklet is designed for a one-semester or two-semester path in overseas economics, basically concentrating on non-economics majors and courses in enterprise, diplomacy, public coverage, and improvement reviews. it's been written to make foreign economics obtainable to large pupil audiences. The booklet assumes a minimum historical past in microeconomics and arithmetic and is going past the standard trade-finance dichotomy to provide equivalent therapy to 4 ''windows'' at the international financial system: overseas alternate, overseas creation, foreign finance, and foreign improvement. It takes a practitioner viewpoint instead of a customary educational view, introducing the coed to the fabric they should develop into powerful analysts in foreign fiscal coverage. the website for the textual content can be discovered at http://iie.gmu.edu
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Extra info for An Introduction to International Economics: New Perspectives on the World Economy
2008) Globalizing Capital: A History of the International Monetary System, Princeton University Press. Financial Times (2008) “The Year the God of Finance Failed,” December 26. Florida, R. (2005), “The World Is Spiky,” Atlantic Monthly, October. F. and B. Hoekman (2010) “Services Trade and Policy,” Journal of Economic Literature, 48:3, 642–92. Goldin, I. A. Reinert (2007) Globalization for Development: Trade, Finance, Aid, Migration and Policy, World Bank. M. and M. Kostecki (2009) The Political Economy of the World Trading System, Oxford University Press.
Improvements in ICT have resulted in firms contracting out on a global basis functions that they used to carry out in-house. S. firms now contract their software development to Indian firms, notably to Tata Consultancy Services and Tata Unysys Ltd. Also, a number of hospitals in the United States now contract with Indian firms for medical transcription services, making use of satellite technology. These are example of services being globalized while being external to the firm. Both of the preceding scenarios, FDI and outsourcing, are made possible by advances in ICT that are only a few decades old.
The notion of the gains from trade also has its limits. It suggests that countries as a whole mutually gain from trade. It does not suggest, however, that everyone within a country will gain from trade. As you have already seen in the example of this chapter, producers of rice in Japan lose from trade, and consumers of rice in Vietnam lose from FURTHER READING AND WEB RESOURCES 29 trade. We will take up the subject of the winners and losers from trade in earnest in Chapter 5 on the political economy of trade.
An Introduction to International Economics: New Perspectives on the World Economy by Kenneth A. Reinert