Chapter 1 Trade in the Global Economy
Notes to Instructor Chapter 1 provides a good overview of international trade as well as a summary of what is covered in each of the chapters in the International Trade textbook.
We study international trade to understand the forces that determine trade among nations. Why do nations trade in goods and services, and what are the forces that encourage movements in populations and capital across borders? This book will also help explain what types of products are traded, how much is traded by whom, and for what reasons. We will also look at how and why governments become involved in trade, why governments might wish to influence trade patterns, and what the impacts are of the various types of government policies.
Chapter Summary This chapter begins by asking why we should even care about international trade. It answers the question by suggesting that trade opens up new possibilities and opportunities for employment, encouraging growth within nations.
This chapter highlights the differences among nations in the flow of goods and services, in foreign direct investment, and in the movement of populations.