Economics Online Tutor
| Globalization: Foreign Exchange and Balance of Payments |
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The many nations of the world, and their economies, have become increasingly inter-related in recent
years. This trend is expected to only grow. This has led to the term "global economy". Technology is a
driving force for this trend. Global markets have developed as a result of rapid advances in
communications and transportation.
The topics covered in these pages illustrate clearly how concepts in economics can be applied to the
real world. Global trade is a hot political issue. Understanding the economic concepts included here will
help you to understand the political arguments relating to trade. You will be able to understand what the
politicians are saying, and whether their arguments are valid or not. The issues are complicated - any
given policy is likely to benefit one segment of the economy while hurting another segment. In that case,
weighing the costs and benefits of one policy choice against another requires value judgements. The
value judgements are not included here: that is taking the issue past the realm of economics into the
realm of politics.
Recall that one of the basics of economics is that economists should make positive, not normative,
statements.
The information included here is based entirely on economics concepts: it is not biased towards one
policy or another. But a well-informed voter, who should be making value judgements, can use this
information to understand what really is involved with these issues. Then, any value judgements at least
will be based on sound economic principles. An unbiased voter will want to support policies that will
have the desired outcomes.
Of course, this information is also necessary for students of many economics classes.
To begin:
years. This trend is expected to only grow. This has led to the term "global economy". Technology is a
driving force for this trend. Global markets have developed as a result of rapid advances in
communications and transportation.
The topics covered in these pages illustrate clearly how concepts in economics can be applied to the
real world. Global trade is a hot political issue. Understanding the economic concepts included here will
help you to understand the political arguments relating to trade. You will be able to understand what the
politicians are saying, and whether their arguments are valid or not. The issues are complicated - any
given policy is likely to benefit one segment of the economy while hurting another segment. In that case,
weighing the costs and benefits of one policy choice against another requires value judgements. The
value judgements are not included here: that is taking the issue past the realm of economics into the
realm of politics.
Recall that one of the basics of economics is that economists should make positive, not normative,
statements.
The information included here is based entirely on economics concepts: it is not biased towards one
policy or another. But a well-informed voter, who should be making value judgements, can use this
information to understand what really is involved with these issues. Then, any value judgements at least
will be based on sound economic principles. An unbiased voter will want to support policies that will
have the desired outcomes.
Of course, this information is also necessary for students of many economics classes.
To begin:
| USE THESE LINKS FOR THE DISCUSSION OF THESE TOPICS: FOREIGN EXCHANGE BALANCE OF PAYMENTS |
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