International economics

Table of Contents

1. Topic pack - International economics - introduction
2. Section 3.1 International trade (notes)
3. Section 3.1 International trade (questions)
4. Section 3.1 International trade - simulations and activities
5. Section 3.2 Exchange rates (notes)
   1. Exchange rates - introduction
   2. Floating exchange rates
   3. Demand and supply of dollars (video)
   4. Exchange rate appreciation
   5. Exchange rate depreciation
   6. Demand and supply of dollars (video)
   7. Advantages and disadvantages of floating exchange rates
   8. Exchange rate determination - calculation
   9. Causes of changes in exchange rate
   10. Effects of exchange rate changes
   11. Fixed exchange rates
   12. Advantages and disadvantages of fixed exchange rates
   13. Managed exchange rates
6. Section 3.2 Exchange rates - questions
7. Section 3.2 Exchange rates - simulations and activities
8. Section 3.3 Balance of payments - notes
9. Section 3.3 Balance of payments - questions
10. Section 3.4 Economic integration - notes
11. Section 3.4 Economic integration - questions
12. Section 3.5 Terms of trade - notes
13. Section 3.5 Terms of trade - questions
14. Print View

Exchange rate depreciation

Syllabus: Explain the factors that lead to changes in currency demand and supply, including

• foreign demand for a country’s exports, (PoPzYTEP - USA demand in market for Reais)
  
• domestic demand for imports, (PoPzYTEP - Brazilian Supply in market for Reais)
• relative interest rates, (where would foreigners want to save? Where interest rates are higher)
  
• relative inflation rates, (higher inflation in Brazil implies less demand for Reais - Po in PoPzYTEP)
  
• investment from overseas in a country’s firms (foreign direct investment eg Building a Factory and portfolio investment eg buying bonds and shares - Warren Buffet) and
• speculation. (buying a currency expecting the currency to appreciate and selling for a profit - George Soros)

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• Exchange rate depreciation - demand

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• Exchange rate depreciation - supply