International economics and trade theory

Watch the video and then summarise what you have learned.

International economics is growing in importance as a field of study because of the rapid integration of international economic markets. More and more, businesses, consumers and governments realise that their lives are increasingly affected not just by what goes on in their own town, state, or country, but by what is happening around the world.

Consumers can buy goods and services from all over the world in their local shops. Local businesses must compete with these foreign products. However, these same businesses also have new opportunities to expand their markets by selling in a multitude of other countries.