International Economics

Importance of International Economics-

With the emerging integration of the international markets there is been a fast growth in international economics as an emerging field of study. The consumers, governments, producers realize that what happening to their economics behavior is not only depend upon what is having in their state but also on the what is happening around the world. For example- a consumer can now enter in a store and buy products from all around the world, local producers face competition from the producers the world some even get the chance to increase their customer base.

The importance of international economics can be assessed by the factor it's the field of economics that deals with matters like international trade, international investment and international borrowing and lending. International gives rise to the transfer of factors of production from one country to another either in the form of foreign direct investment or labor capital movement (migration). Another factor which gives the international economics too much importance in international finance which is the study of the balance of payments, exchange rate, and open economy macroeconomics linked to these are some very special issues such as forward-future market, exchange rate determination, appreciation and depreciation of currency etc. these are the issues of grieve importance which can't be ignored. International economics make people aware about the economies of the world and how to compare them. International economics is a subject which needs a lot of data collection and analysis which can help students to understand the importance of international economics for example- students after studying international economics can understand how the rise in inflation rate in US affects the exchange rate in India.

Difficulties faced by a student while solving international economics problem-

International economics is a broad subject with a lots of sub sections like international trade and international finance which in short is the combination of macroeconomics at the world level. Now the student is not only studying about a country but about the whole world with subjects ranging from finance to mathematics. This subject has both theoretical and numerical problems therefore students have to deal with them at the same point of time which sometimes creates a lot of problem for the students.

Another problem faced by the students is to understand international trade and international economics as same subjects not realizing that international trade is just a part of the international economics, it's a much boarder subject. International economics requires lots of research work for the students because it's a subject which came into light in last half century so there is lot of scope for it to grow for example- comparing the world economy with or without international economics, impact of international economics on world economies. Therefore a student who is not interested in doing research base work can face difficulties in dealing with international economics problems.

Few important tips to solve problems of international economics

International economics is the economics which uses the tools of microeconomics and macroeconomics to understand the behavior of world economy, therefore for a student studying international economics it is important to have at least good conceptual knowledge of microeconomics and macroeconomics. One more important tip to solve international economics problem is to trying to understand its importance and study it with more interest because it deals with the real world problems for example- the currency exchange rate which influenced by the matters not just of its own country but the other countries as well, the international financial institutions uses international concepts to determine the countries who genuinely needs fund requirements.

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