International Economics is the study of how countries interact through trade, investment, and finance. It examines how goods and services are exchanged across borders, the impact of tariffs and trade agreements, and the flow of capital between nations. Understanding these dynamics helps countries make informed decisions about their economic policies and fosters global cooperation.
Additionally, International Economics explores the effects of currency exchange rates and how they influence international trade. Concepts like comparative advantage explain why countries specialize in certain products, while globalization highlights the interconnectedness of economies. This field is essential for navigating the complexities of the global market.