普格尔《国际贸易（第17版）》 英文题库Pugel17e_Chapter1.docxVIP

普格尔《国际贸易（第17版）》 英文题库Pugel17e_Chapter1 Chapter 1 Introduction: What is International Economics?International economics is a branch of economics that deals with cross-border transactions of goods, services, and financial assets. In this field, economists study the interaction of individuals, firms, and governments across national boundaries and analyze the effects of these interactions on economies. The basics of international trade theory are covered in this chapter, including absolute advantage, comparative advantage, and the gains from trade. Absolute advantage refers to a countrys ability to produce a good more efficiently than another country, while comparative advantage refers to a countrys ability to produce a good at a lower opportunity cost than another country. When countries specialize in producing goods in which they have a comparative advantage and trade with one another, they can both be better off than if they tried to produce everything themselves. This is called the gains from trade. International trade is not the only type of cross-border transaction studied in international economics. International finance is also an important aspect of the field. International finance deals with the exchange of currencies across borders, foreign direct investment, and the borrowing and lending of funds. The main drivers of international trade are differences in resources, technology, and preferences across countries. These differences lead to countries specializing in the production of certain goods, which can then be traded with other countries. In addition, improvements in transportation and communication technology have made it easier and cheaper to move goods, services, and capital across borders. There are several debates and controversies within international economics. One of the main debates is whether trade is beneficial or harmful in terms of domestic welfare. Some argue that trade can lead to job losses and wage stagnation in developed countrie