I. Introduction
 increasing interdependence

1975–2005 – world trade increased by 350 percent
 purpose of international economics
II. The scope of international economics
 microeconomics
 macroeconomics
 international economics
 course outline o Chapters 1–12 – microeconomics o Chapters 13–20 – macroeconomics
 keeping international economics in perspective, i.e., domestic economic activity also is important
 importance of international economics o the world economy o differences among countries o standards of living o international trade in services
III. The output of the world economy
 the importance of the concept
 world GDP = $44.7 trillion
 an aside on the World Bank

Table 1.1
IV. Imports and exports of goods in the world economy
 imports
 exports

Table 1.2
 world exports and world GDP – Figure 1.1

US states and regions in the world economy
V. International trade in services
 issues o invisible trade o measurement problems o a new area of study o relative size – $2.4 trillion

Table 1.3

The US position in the world economy – Figure 1.2
VI. Capital flows in the world economy
 multinational corporations (MNCs)
 portfolio capital
 foreign direct investment (FDI)
© 2015 W. Charles Sawyer and Richard L. Sprinkle


Table 1.4
 foreign exchange market
 the exchange rate

Figure 1.3
VII. Trends in international production and trade

Table 1.5

The growth of the world economy: Historical perspectives and future trends
VIII. Globalization
 definition
 a country perspective – Table 1.6
 a world perspective – Figure 1.4
 analyzing globalization o costs o benefits
© 2015 W. Charles Sawyer and Richard L. Sprinkle