International Trade and Exchange Rates

Introduction to International Trade. In this lesson, you will learn about: Absolute and Comparative Advantage; What Happens When a Country Has an Absolute Advantage in All Goods; Intra-industry Trade between Similar Economies; The Benefits of Reducing Barriers to International Trade. Further, This lesson defines the meaning of foreign exchange and related terms, how foreign exchange rate is determined, study of foreign exchange rate regimes (fixed and flexible exchange rate) and their differences; thereafter hybrid systems of exchange rate and operation of foreign exchange market.