ECO 358 International Economics Professor Malamud BEH – 3294 Fax: 895 – Website: go to unlv homepage and follow links college / department / economics / faculty / malamud

Course objectives Familiarize you with the world economy and with economic issues encountered by international businesses. why nations trade with each other gains from trade the effects of barriers to trade the advantages and disadvantages of fixed and flexible exchange rates.

International Economics By Robert J. Carbaugh 7th Edition Powerpoint slides at Carbaugh Website: Follow links to Teaching Resources / Supplements

Elements of international interdependence Trade : goods, services, raw materials, energy Finance : foreign debt, foreign investment, exchange rates Business : multinational corporations, global production

Exports of goods and services (percent of gdp, 1997) Country Exports, % of GDP Netherlands55% Norway41 Canada39 Mexico31 South Korea31 United Kingdom29 Germany25 France25 United States12 Japan10

Leading trading partners of the United States, 1997 Value of US Countryexports ($ bill.)imports ($ bill.) Canada$133$160 Japan68118 Mexico5576 United Kingdom3131 South Korea2718 China (incl. Hong Kong) 2564 Germany2340 Singapore1721 Belgium/Luxembourg137

Competitiveness & trade Objective: generate high and rising standard of living No nation can efficiently make everything itself Trade allows nations to focus on what they make best Inefficient sectors are squeezed out Sectors open to competition become more efficient and productive