Slide 1-3
Introduction
Huge reductions in transport costs;
Steam power: rail, steamships; Suez Canal 1869; refrigeration.
Improvements in communications
Submarine telegraph cables linking financial markets: English Channel in 1851,
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Slide 1-7
Introduction
The study of international economics has never been
as important as it is now.
• At the beginning of the 21st century, nations are more
The Balance of Payments
• Some countries run large trade surpluses.
Slide 1-9
Introduction
Figure 1-2: Exports and Imports as Percentages of National Income in 1994
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Slide 1-10
What is International Economics About?
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