Conservative Economic Commentary | Topic: International Economics

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Subject: International Economics

A kind of economic theory.

International economics is concerned with the effects upon economic activity of international differences in productive resources and consumer preferences and the institutions that affect them. It seeks to explain the patterns and consequences of transactions and interactions between the inhabitants of different countries, including trade, investment and migration.

* International trade studies goods-and-services flows across international boundaries from supply-and-demand factors, economic integration, and policy variables such as tariff rates and trade quotas.

* International finance studies the flow of capital across international financial markets, and the effects of these movements on exchange rates.

* International monetary economics and macroeconomics studies money and macro flows across countries.[Wikipedia: 2009]

US Trade Deficit 2006

Growth of trade imbalance slows

By John Schroy, on July 30th, 2006 |

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Rate of Growth of US Trade Deficit Slows

According to a US Bureau of Economic Analysis release of July 12, 2006, the US trade deficit leveled off during 2006, with a difference between imports and exports of goods and services of $63.8 billion in May 2006.

Since the trade deficit is a major source of funds for the US bond market, a slowing of the rate of growth of the deficit will effect interest rates.

More » Growth of trade imbalance slows