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International Economics (Subject) / Introduction (Lesson)
- Main Characteristics of World Trade (3) Main trading regions are Europe, North America, Asia Intra-regional trade is an essential part manufacturers are the most imported items of trade
- Main characteristics of German Trade (3) exports mainly industrial products imports raw materials as well as industrial products large trade with similar countries to Germany
- Balance of payments an economy's net capital outflow is always equal to its net exports its saving can be used to either finance investments home or to buy assets abroad
- Net Exports value of a nation's export minus value of a nations's import (trade balance)
- Factors that affect net export (6): taste of consumers for domestic and foreign goods the price of goods abroad and at home exchange rates at which people can use domestic currency to buy foreign currency income of consumers at home and abroad costs of transporting goods from one country to the other policies of the government towards international trade
- net capital outflow purchase of foreign assets by domestic residents minus purchase of domestic assets by forgeigners
- variables that influence net capital outflow (4) real interest rate being paid on foreign assets real interest rate being paid on domestic assets perceived economic and political risks of holding assets abroad goverment policies that affect foreign ownership of domestic assets
- NCO= Savings-Investments
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