Increasing interest in the field of international economics has been brought about not only by the dynamics of international trade and investment, processes of economic integration or the introduction of the euro, but also by increasing uncertainty surrounding international financial-markets, and the global financial crisis. International economics studies how societies allocate scarce resources and goods to satisfy their unlimited wants in the global scale. It analyzes flows of goods, services and payments among sovereign nations, policies directed at regulating these flows, and their effect on the nation’s welfare.

The primary purpose of this textbook is to introduce fundamental concepts in international economics, and to explain basic mechanisms underlying the international trade and monetary issues. It is intended mostly for students of International Business program at the University of Economics in Katowice, taking courses in International Economics.