CHAPTER I
PRELIMINARY
A. Background
International economics is economics that
discusses the effects of interdependence between countries in the world, both
in terms of international trade and international credit markets. United States
energy sources, for example, are very dependent on foreign producers, while
Japan imports almost half of the food consumed by its population. On the other
hand, developing countries need technology that is developed and produced by
industrial countries. In the long run, the pattern of international trade is
determined by the principles of comparative advantage, from this aspect I take
the theme of the influence of international trade on the domestic economy. We,
as a developing country, are very concerned about the welfare of the people and
the State compared to the environment, therefore international trade in the
field of exports and imports, for example, greatly affects the economy of our
country. Why is that because we know that taxes or customs in carrying out
export and import transaction activities are very large compared to other
countries' income, it is very supportive of domestic prosperity.
In my opinion the effect of international
trade on the domestic economy is very influential, why? Because international
trade is very common among several countries including our country, as has been
stated above international trade is very supportive of domestic welfare.
Therefore, our country must establish good
relations with other developing countries to increase the country's confidence
in establishing cooperation, especially in the field of trade, especially any
import-export which is beneficial and useful to us, and beneficial to both
parties.
The effect of international trade is felt
on prices, national income, and the level of employment opportunities of
countries involved in international trade.
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