Chapter 1 outline I. Introduction • increasing interdependence • 1975–2005 – world trade increased by 350 percent • purpose of international economics II. The scope of international economics • microeconomics • macroeconomics • international economics • course outline o Chapters 1–12 – microeconomics o Chapters 13–20 – macroeconomics • keeping international economics in perspective, i.e., domestic economic activity also is important • importance of international economics o the world economy o differences among countries o standards of living o international trade in services III. The output of the world economy • the importance of the concept • world GDP = $44.7 trillion • an aside on the World Bank • Table 1.1 IV. Imports and exports of goods in the world economy • imports • exports • Table 1.2 • world exports and world GDP – Figure 1.1