• Unit 7: International Trade and Finance

    This unit examines the macroeconomic effects of international flows of financial capital, and goods and services. The determinants of exchange rates are identified and the connection is made between financial capital flows and the trade balance. The unit explores the effects of exchange rates on a country's economy and the economies of its trading partners. The welfare effects of trade are also studied.

    Completing this unit should take you approximately 4 hours.