International trade and finance, Part 1

Abstract

International Trade and Finance is a three-part series of open educational resources that connects world events to economic and financial analysis. Part 1: Economics of International Trade introduces readers to the benefits of the free movement of goods and services and the factors of production by exploring the protectionist policies that limit international trade, discussing the conditions under which such policies lead to economic well-being, and evaluating the effects of both government policies and domestic producers’ practices on national and international economic well-being. Other parts in this series include Part 2: Feasibility of International Trade and Part 3: International Trade Finance. Feasibility of International Trade introduces tools and frameworks for assessing whether an organization is ready to enter international markets and for identifying the correct market. Risks associated with international trade, including differences in culture, economic development, and political systems are explored. Also discussed are various rules and regulations applicable to international trade and the various government organizations that help businesses with international expansion. International Trade Finance introduces readers to the role of trade finance in international trade decisions, including financial risks such as non-payment, non-performance, and currency risk. Also discussed are the financial tools and international financial organizations that help to mitigate these risks, as well as the role of sustainable finance in international trade today.