International
Economics is a branch of economics that studies everything about the inter -
state economic relations and linkages of micro economics ( pricing / allocation
of resources ) with macro- economics ( national income / GNP, per capita / GDP
and aggregate resources ).
Form of
international economic relations, both the exchange and the debt / receivables,
describes a country's economic position in relation to other countries.
Different economic relations between countries with inter - regional in the
state :
-Differences
in currencies
-Different
regulations issued by the Government
-Degree of
resource mobility
-Another
difference : law, culture, customs, politics, taste.
Seldom has a
country whose economy is completely closed, therefore it needs to be studied
international economics. Whenever there is change in demand or aggregate supply
in the world market, including price, then its influence is felt in the form of
changes in export / import and indirectly also on production and prices in the
country.
Renaissance
= desire to explore another world. Mercantilism group is often divided into two
:
Bullionist
groups, the more firmly linked the prosperity of the country with increased
levels of precious metals stocks, pushing economic policies that produce exportable
surplus, precious metals serve as money, the main character : Gerald Malynes pure
Merchantilist group, blurring the distinction of money and capital ( money is
capital ), interest rate issues : opposed to usury, interest rates low to
encourage economic activity. Prices continue to rise, money supply needs to be
increased. So, money is very important. Roads multiply money by international
trade.
Pure
mercantilist figures include:
Josiah Child
: international trade generates prosperity, increase the power. Through trade
and religion, encouraged exports, imports are restricted. Export of precious
metals is prohibited. Export goods are subsidized in order to be sold cheap,
increase foreign exchange, dropped its own currency. Banned the export of raw
materials in order to keep domestic prices low. Capital goods and exported
technicians prohibited. Maintained at levels as low wages, so that the prices
in the domestic fixed.
James Stenard : the lowest class of people in the state trader must be pressed until the physical fulfillment. Try to obtain a monopoly of trade and colonies.
Thomas Mun /
Louis XIV ( French PM ) : known as Colbertisme, focuses on the development of
domestic industries rather than international trade.
Von Hornigh
/ Beaker : introducing Cameralisme, financial officers attempt to cultivate the
precious metal for the sake of the kingdom over fiscal policy.
Unified view
Bullionist groups and pure Merchantilist : the government should regulate
foreign trade is strictly for the sake of fostering a strong national state.
The emergence of a strong national state is the beginning of capitalism.