1. The International Economy

2. Trade Restrictions and free trade agreements
Tariffs-tax on imports
Quota- legal limit on amount that can be imported
Free Trade agreements
Reduce tariffs and quotas
Lower trade barriers
European Union, NAFTA

3. Balance of payments
Trade surplus and Trade Deficit

4. Developing economies and industrial Market Economies
Developing Countries
Lower GDP
Lower literacy rate
High Unemployment
Underemployment
Rapid population growth
Industrial Market Economies
Most western countries
Economically advanced

6. Foreign Trade and Migration
Import Substitution- name new products similar to imported ones
Export Promotion
International Migration
Move from poor countries to rich countries
Brain Drain

7. Foreign Aid
Foreign Aid- funds given by large economies to spur economic development
Bilateral Aid- one country to one country
Multilateral Aid- organizations provide aid
US Agency for International Development (USAID)
Further us interest by expanding democracy and free markets
Improve standard of living around the world

9. Infrastructure Physical Infrastructure transport, communication,
energy
Sanitation
airports

10. Economies in Transition
Privatization
Convergence Theory- developing countries can close gap and can grow at faster rate