International rapidly increasing due to foreign investments

International economics may be narrowly described as the interaction and relation of economic activities between various countries around the globe. On the other hand, international economics is concerned on the effects of international differences on economics in relation to productivity and consumer preferences. Similarly, international economics focuses on interaction between different countries in the aspects of trade, migration and investment.

International economics seeks to identify ways of improving the global marketplace since all national economies have been integrated into one. This has occurred following the increasing advancements in technology hence bringing changes in economic policies as well as bringing barriers to trade and finance. As a result, economic interactions have increased over the past decades leading to subsequent global economic growth.

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One of the most significant impacts of international economics is the increased linkage between low income nations and the high income nations. This has resulted to participation of poor nations/developing countries into global production, finance and trade. The overall result is the integration of national economies through trade, productivity as well as finance. Capital inflows are rapidly increasing due to foreign investments this direct foreign investment emphasizes the role played by multinational corporations in global production n trade.

As stated earlier, advancements in technology have reduced the costs of transportation and communication between nations and this in turn has resulted to divided value chain of production hence increased rates of imports and exports around the globe. This has enabled the chaining out of the different processes of production in different parts of the world depending on the comparative advantages of the production stages. This way, participation of nations in the production process is ensured as well as economic growth for such nations.

The other significant aspect of international economics is the increased harmony amongst economic institutions all over the world. Despite the fact that there have been imitations in economic institutions between various nations, there is a great aspect of harmonization in such institutions obligations of treaties concerning trade, integration of investment and taxation policies, banking administration including conversion of various currencies as well as policies on foreign investments.

Such treaties have brought many nations together such as the bi-national tax treaties and other European unions. However, international economics which has intensified globalization around the globe has brought up a lot of debates regarding the implications involved between the developing and developed countries.

As a result, policies are being implemented to ensure that globalization brings out maximum economic growth in developing countries. Similarly, a lot of debates have been raised on whether international economics are promoters of market stability or actually undermines the same. There is fear of collapse of emerging markets as far as globalization is concerned.

In conclusion, international economics is concerned with the integration of global economics in terms of trade, finance and other resources. Such interactions include international trade which involves flows of goods and services between nations, determination of factors of demand and determination of variables of policy implementation.

The other aspect involves international finance which studies inflow of capital resulting from international markets through monitoring exchange rates in regard to financial markets. All these aspects have had the great impact of bringing together many nations on various aspects of economics. This way, both developing and developed countries have had the opportunity to take part in contributing to the international economy as well as improving national economic growth.