The study of international economics deals with the effects that cross country differences in the natural, productive resources have on the choices and preferences of the consumers along with the capacity of the countries to satisfy them. International economics encompasses study of the international trade consisting of the flow of products and services across various nations. It also deals with the study of international finance, which consists of the analysis of the flow of money across the various financial markets. The study also governs the international monetary policies, regulations for international trade and the basic framework that creates the international trade sanctions.
International economics also studies the concepts of economic nationalism and the impact international trade and business relations have on the overall relationship between the nations that participate in an economic activity. Exchange rate determination and the regulations that monitor and check the economic indicators are also a part of the international economic studies. Certain policy variables like the tariff rate determination, the trade quota ascertainment and the study of flow of capital find prime place of importance in the study of international economics. International conflicts and economic nationalism also have an impact on international economics.
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