Question : The study of international trade patterns and exchange rates falls under:
Option 1: Microeconomics
Option 2: Macroeconomics
Option 3: International economics
Option 4: Econometric analysis
Correct Answer: International economics
Solution : The correct answer is (c) International economics.
International economics is a field of study that focuses on the economic interactions between countries. It examines the principles, theories, and policies related to international trade, foreign exchange markets, balance of payments, and global economic integration. The study of international trade patterns explores the factors influencing the exchange of goods and services between nations, such as comparative advantage, trade barriers, trade agreements, and the impact of trade on economic welfare. Additionally, the study of exchange rates examines the determination of currency values, currency exchange markets, and the effects of exchange rate fluctuations on international trade and capital flows.
