International economics refers to the study of economic interactions and relationships between countries, including trade, finance, and investments. It analyzes how countries' economies are interconnected and how these connections influence global markets.
Related terms
Globalization: The process by which businesses, technologies, and ideas spread across national borders, leading to increased interdependence among countries.
Balance of Trade: The difference between the value of a country's exports and imports. A positive balance indicates a trade surplus (exports exceed imports), while a negative balance suggests a trade deficit (imports surpass exports).
Exchange Rate: The rate at which one currency can be exchanged for another. Fluctuations in exchange rates impact international trade by affecting the cost of importing and exporting goods.