the world of international Economics (2)

This Increased internationalization of economic life made even more complicated by foreign-owned assets.More and more companies in many countries are owned partially or totally by foreigner .Further,in the 1990s ,foreigners purchased U.S government bonds and corporate stocks in record number ,partly fueling the stock market boom of those years .The overall heightened presence of foreign goods ,foreign producers ,and foreign owned assets causes many to question the impact and desirability of international transaction .it is our hope that after reading this text you will be better able to understand how international trade and payments effect a country and that you will Know how to evaluate the implication of government policies that are undertaken to influene the level and direction of international transaction .
you will be studying one of the oldest branches of economics.people have been concerned about the goods and services crossing their borders for as long as nation-states or city-states have existed .some of the earliest economic data relate to international trade ,and early economic thinking often centered on the implications of international trade for the well-being of a politically defined area.Although similar to regional trade for the well-being of apolitically defined area .Although similar to regional economics in many respects,international economics has traditionally been treated as a special branch of the discipline.this is not terribly surprising when one consider that economic transactions between politically distinct areas are often associated with many differences that influence the nature of exchange between them rather than transactions within them.For example,the degree of factor mobility between countries often differs from that within countries .countries can have different forms of government ,different cultures,different institutions ,and different arrays of products .