International Economics : International Macroeconomics

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International macroeconomics is the study of how nations cooperate through trade of goods and services, through movements of money and by investment based on the idea that resources are less transportable internationally than goods. During the semester, we learned that a primary motivation behind a nation’s participation in international trade is the belief that resources are not circulated equally among all trading nations. International trade is the structure where upon American wealth rests. International trade is the structure upon which American prosperity resides. Free trade policies have produced a level of competition in today 's open market that stimulates recurrent improvement leading to superior products, better-paying…show more content…
The purpose of this approach was to achieve a trade surplus while avoiding a trade deficit. By growing exports and trade utilizing a strategy known as protectionism, rulers were able to accumulate more gold and affluence for their countries. While mercantilism is one of the earliest trade theories, it is a method for present-day thinking as many Asian countries and even Germany still prefer exports and discourage imports through a system of neo-mercantilism in which the countries encourage a mixture of protectionist strategies and limitations accompanied by domestic-industry appropriations. It is important to note that approximately every country has at one time, executed some form of protective rule to safeguard critical commerce in its economy. Although export-oriented companies characteristically back protectionist procedures that indulge their industries, trade barriers, hurt others. It is remarkable that a theory introduced back in the sixteenth century gave way to free enterprise or capitalism giving us insight into the evolution as well as the importance of the concept of international trade this is as important today to the stability of a nation as it was back when it was introduced. The one drawback of the mercantilism system was the oversupply produced that had to result in serious inflation.
In 1776, Adam Smith, frequently referred to as the father of modern economics, strongly differed
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