Introduction:
These lectures were recorded live in my introductory principles of microeconomics classes fall 2004, are informal and contain some misstatements and other errors.  I am sorry about the errors but they do not seem to interfere very much with the overall benefit of the lectures. 

The lectures, listed just below, are in RealAudio format and refer to the PowerPoint slides also available just below.  Load the PowerPoint presentation to your computer, then refer to it as you load and listen to the lectures.  Pause/resume the lectures as convenient to take full advantage of the slides. 

There are five lectures, the first four averaging about an hour each, the last about 40 minutes.  We cover comparative advantage, introduction to the determination of trade patterns, international capital flows, exchange rate determination, analysis of the gains and losses from international trade, and the basic principles of international accounting.  A person who truly masters the content of these lectures will have achieved a deep understanding of international economics. 

These lectures are for the benefit of my students.  Others are free to study and learn from them, but I hope they will give me feedback and suggestions.  And please do not reproduce or use this material without permission.  Send your reactions and comments to gandron@yahoo.com.

     ---PowerPoint Slides (revised 10-17-04)

     ---Five Lectures in Real Audio
          ---Lecture 1  --Slides 1-11.  Topics:  Overview and basic principles; comparative advantage in action; "trade currency-conversion ratios"--an analytical method and model for international trade; exploiting comparative advantage to make money; summary of some basic ideas;  an example with 6 internationally traded goods.
          ---Lecture 2  --Slides 11-20.  Topics:  The equilibrium trade currency-conversion ratio; using simple supply and demand curve diagrams to understand the price changes of internationally traded goods; basic principles and purpose of the foreign exchange market; foreign exchange market is not needed for international trade; foreign exchange market facilitates specialization and the division of labor in international trade; determination of exchange rates; the "big mac index".
          ---Lecture 3  --Slides 20-25.  Topics:  Review of principles and structure of foerign-exchange market; the process driving the exchange rate to equilibrium--profit incentive; inflation and its impact on prices and the exchange rate; inflation, the price level and exchange rates; prelude to modeling international capital flows--introduction to basic portfolio theory; introduction to international flows of claims.
          ---Lecture 4  --Slides 26-32.  Topics:  The international flows of claims, continued--; example:  integrating the flows of claims into the basic model with goods; why are trade currency-conversion ratios of claims more tightly linked to the foreign exchange markets than corresponding ratios of goods; who gains, who loses from international trade of goods and claims (including the concept of "pareto gains" or losses).
          ---Lecture 5  --Slides 33-41.  Topics:  Some definitions--“the balance of payments”, "the current account balance”, “the merchandise trade balance”, “the capital account balance”; the  "services balance"; the balance of payments must always balance (but not any other balance); review, summary and implications of this five lecture series on international economics.