TAILIEUCHUNG - Lecture Macroeconomics (20/e): Chapter COI1 - McConnell, Brue, Flynn

Chapter COI1 - The United States in the global economy. After reading this chapter, you should be able to: State several key facts about . international trade, define comparative advantage and explain how it relates to specialization and international trade, explain how exchange rates are determined in currency (foreign-exchange) markets, | The United States in the Global Economy COI1 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. International Linkages United States Economy Other National Economies Goods & Services Capital & Labor Information & Technology Money LO1 Several economic flows link the . economy and the economies of other nations. The first of these are the flows of goods and services, or simply the trade flows. The United States exports goods and services to other nations and imports goods and services from other nations. Capital and labor flows represent the movement of resources between nations. For example, a Japanese car manufacturer may choose to establish a production facility in the United States while a . parts manufacturer may choose to establish a plant abroad. Information and technology flows represent the transfer of information between countries, such as investment opportunities, and .

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