International economics is concerned with the effects upon economic activity of international differences in productive resources and consumer preferences and the institutions that affect them. It seeks to explain the patterns and consequences of transactions and interactions between the inhabitants of different countries, including trade, investment and migration.economies of scale are benefits from bulk buying

exchange rate: Price for which the currency of a country can be exchanged for another country's currency. Factors that influence exchange rate include.

reason of trade: transaction involving the sale and purchase of a good, service, or information.

comparative advantage: Concept in economics that a country should specialize in producing and exporting only those goods and services which it can produce more efficiently

Balance of Payments: An accounting record of all transactions made by a country over a certain time period, comparing the amount of foreign currency taken in to the amount of domestic currency paid out.

TYPES OF INVESMENTS

International trade theories

Summary

International trade is exchange of capital, goods, and services across international borders or territories, Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods and services produced within their own borders.

on page describes the best theories for export:

absolute advantage: where exporting countries must produce the best for best profit and returns

comparative advantages:  when not necessarily be an absolute advantage, this happens when the trade between the two countries are different these benefits costs are only in the production

factor endowments: exporting countries to intensity factors and whether you own few factors.

THE INFLATION

The inflation is rapid increase in the general price level, as measured by some broad index number of prices.

There is no one single, universally accepted cause of inflation, and the modern economic theory describes three types of inflation: (1) Cost-push inflation is due to wage increases that cause businesses to raise prices to cover higher labor costs, which leads to demand for still higher wages (the wage-price spiral), (2) Demand-pull inflation results from increasing consumer demand financed by easier availability of credit; (3) Monetary inflation caused by the expansion in money supply (due to printing of more money by a government to cover its deficits).

Colombia in the matter of inflation is different then the slowdown is felt this year in the Colombian economy, which could have a near zero growth, the outlook for 2010 looks better, but not come to represent a vigorous recovery.
The projected average growth is 2.29 percent, well below a 5 or 6 percent that economists consider necessary for Colombia aims to reduce poverty levels

Finance Glossary

Liquidated: To sell all of a company's assets, pay outstanding debts, and distribute the remainder to shareholders, and then go out of business.

Example: The company does not overcome the debts for which it proceeds to liquidate it to replace them

Financial outlay: Payments on obligations in the form of cash, checks, the issuance of bonds or notes, or the maturing of interest coupons.

Example:  I catch up with the financial costs that have made ​​this month.

Payroll: the total of these amounts or the actual money equivalent

Example:  the cost of  payroll increases this month

Debtor: An amount owed to a person or organization for funds borrowed.

Example: I’m one of the debtors in the bank

Capital: Cash or goods used to generate income either by investing in a business or a different income property.

Example: my family have capital for investment

Creditor: A person or organization which extends credit to others.

example: the creditor hasn’t been approved in the bank

inflation: The overall general upward price movement of goods and services in an economy

example: the inflation increase 1 percent in this year.

Fixed assets: Land, buildings, equipment, machinery, vehicles, leasehold improvements, and other such items.

Example: Fixed assets are not consumed or sold during the normal course of a business but their owner uses them to carry on its operations

Balance sheet: Condensed statement that shows the financial position of an entity on a specified date (usually the last day of an accounting period)

Example: the balance sheet haven’t been registered the last year

Current assets: Accounts receivables, inventory, work in process, cash, etc.,

Example: in this moment the company only has current assets

Current Liabilities: Obligations such as deferred dividend, trade credit, and unpaid taxes, arising in the normal course of a business and due for payment within a year. Also called current debt.

Example: the company has current liabilities in the bank international