1. ECO 358 International Economics Professor Malamud BEH 502 895 – 3294 Fax: 895 – 1354 Email: bernard.malamud@unlv.edubernard.malamud@unlv.edu – Website: www.unlv.edu/faculty/bmalamudwww.unlv.edu/faculty/bmalamud – Office hours: MTWThF 11:30 -12:30 pm and by appointment

2. International Economics: The Way the World Works Objectives: Facts: the world’s economies and relations between them Principles: Trade flows Capital flows Currency exchange rates Advantages and disadvantages of fixed and floating rates Issues: Globalization Protection R e b a l a n c I n g

3. The IMF in the News Managing Currency and Debt Crises East Asia, 1997-1998 Belarus, 2011 PIIGS, 2011 Portugal Bailout: Geracio A Rasca “The troika is governing us.” http://mobile.kcfr.org/news/front/136972462#menu

4. Eurozone 16 Germany France Italy Netherlands Belgium Luxembourg Austria Ireland Spain Finland Portugal Greece Slovenia Cyprus Malta Slovakia Transition Economies Next ???

5. Global Slump Unemployment Rate Country2007 2010/2011 United States 4.6% 9.1% (5/11) Japan 3.8% 4.9% Britain 5.3% 7.8% Canada 6.0% 7.6% EU 9.7% France 7.9% 9.6% Germany 9.0% 6.1% Italy 6.2% 8.6% Spain 8.3%21.3% Portugal 7.6%12.1% Greece 9.2%12.2% Brazil 9.3% 6.5% Russia 5.9% 7.6% India 7.2% 9.4% China 4.0% 4.0% 9.0%( 1/09) Belarus 0.7%

6. International Interdependencies Trade : goods, services, raw materials, energy Finance : exchange rates, foreign debt, foreign investment (fdi and portfolio investment) Business : multinational enterprises (MNEs), global production Migration and remittances : flows of skilled workers, unskilled workers, family members

7. Trade in goods and services (percent of gdp) Country % of GDP, 2002 % of GDP, 2006 Exports Imports Exports Imports Netherlands53 4671 63 Canada37 3346 40 Germany 31 25 4035 South Korea27 26 4340 Norway31 18 4528 France22 21 2627 United Kingdom18 21 2630 United States 9 13 1115 USA, 201012½ 16 Japan10 8 1110

8. Growth of value of merchandise exports at constant prices for twenty-four countries (annual average rates) 1870 - 19131913 - 19291929 - 19501950 - 19731973 - 1998 Western Europe3.230.21-0.328.034.55 United States4.863.331.686.275.98 Russia/Soviet Union n.a.-4.663.089.982.95 Latin America b 3.403.891.464.105.70 China2.592.900.062.7411.81 India2.37-1.02-1.902.465.94 Japan8.477.00-0.9715.545.30 World3.350.897.885.07 Globalization Cycles, 1870 - 1998 “Globalization Backlash”

9. Macro Facts: Trade Deficit, Goods & Services Imports Exports

10. Macro Facts: Merchandise Trade Deficit

13. Balance on Services Balance on Investment Income Unilateral transfers, net

14. Major currencies/$ Broad basket of currencies/$

15. Average annual rates of growth, 1870-1998, world and main regions 1870 - 19981870 - 19131913 - 19501950 - 19731973-1998 World1.481.300.912.931.33 Western Europe1.741.320.764.081.78 Europe 1 Western offshoots(b) 1.871.811.552.441.94 Japan2.631.480.898.052.34 Asia (excluding Japan) 1.330.38-0.022.923.54 Latin America1.411.811.422.520.99 Eastern Europe1.221.151.503.49-1.10 Africa 0.880.641.022.070.01