Difference between International Trade & International Economics
Particulars International Trade
1. Conceptual International trade is exchange
difference of capital, goods, and services
across international borders or
territories
20 Basis of It is a branch of international
international economics
economies
Subject matter Specialization production,
export, import, difference
between factors of production
are the main subject matters of
international economics
Factors Land, Labor, capital &
technology
Area of study Studies goods-and-services
flows across international
boundaries from supply-and-
demand factors, economic
integration, and policy variables
such as tariff rates and trade
quotas.
Theoretical base One is comparative advantage
and the other is increasing
returns to scale.
International Economics
International economics deals
with economic relations
among the countries.
It is a distinct and separate
branch of “applied”
economics
International economics deals
with international trade theory
& policy, balance of payment,
& adjustment in the balance of
payment.
It seeks to explain the patterns
and consequences of
transactions and interactions
between the inhabitants of
different countries, including
trade, investment and
migration.