
Explore eight essential international economics diagrams, from the free trade diagram to exchange rate diagrams, and learn how tariffs, subsidies, quotas, and exchange rates shape cross-border money flows.
Understand how the free trade diagram extends the basic microeconomic demand and supply model, showing world supply shifting price from P1 to P2 and its impact on domestic producers' revenue.
Analyze how a protective tariff shifts prices from p_w to p_w + t, boosting domestic producers while creating welfare losses and government revenue, as shown in the protective tariff diagram.
Explore the protective subsidy diagram, starting from the base free trade diagram, showing how a subsidy shifts the domestic supply outward, affects prices, and alters producer and world revenues.
Learn how the protectionist quota diagram reshapes domestic and world producer revenues, creates welfare loss, and compares with tariffs and subsidies in international economics.
Explore the exchange rate diagram by linking the basic supply and demand framework to currencies, showing how the market for dollars and euros determines price and quantity.
Explore fixed exchange rate systems that peg currencies to another currency or gold, and learn how revaluation and devaluation affect uncertainty, investment, inflation, reserves, and policy risk.
Explore floating exchange rates determined by demand and supply, with currency appreciation or depreciation, without government intervention, plus advantages like interest-rate policy and self-adjustment, and risks of uncertainty.
Explore how governments manage exchange rates by allowing partial float with central bank intervention to stabilize the rate, supporting exports, imports, and foreign investment, illustrated by the Chilean peso example.
Master the eight essential diagrams of international economics, including tariff, subsidy, quota, and the free trade diagram, to understand how governments and economists illustrate trade.
Master the 8 Essential International Economics Diagrams.
This course comes directly from feedback and suggestions from students like you—thank you for helping make my Economics courses the highest-grossing on Udemy!
The Essential Diagrams Series is designed for two types of learners:
Students looking to master the eight essential diagrams taught in nearly every introductory International Economics course.
Teachers and students wanting to understand how human behavior is visually represented in economic diagrams.
If either of these sounds like you, this course is for you.
This course focuses on eight core diagrams of International Economics, rooted in foundational theories like Gains from Trade, Free Trade, Protectionism, Exchange Rates, Balance of Payments, and Economic Integration. These diagrams are the visual representation of how governments intervene in the global market to create stability and growth.
Here’s what you’ll master:
Free Trade and Protectionism:
Free Trade Diagram
Protectionist Tariff Diagram
Protectionist Subsidy Diagram
Protectionist Quota Diagram
Exchange Rates:
Exchange Rate Diagram
Fixed Exchange Rate Diagram
Floating Exchange Rate Diagram
Managed Exchange Rate Diagram
Important: If you’re looking for a comprehensive International Economics course, this isn’t it! For a full experience, check out my International Economics: A Comprehensive Economics Course.
A Weekly Bonus
As part of this course, you’ll receive a subscription to my weekly newsletter, Just One Thing. Each Monday, you’ll get a two-minute breakdown of one essential economic concept, delivered straight to your inbox. It’s a quick and stress-free way to expand your understanding of economics, one idea at a time.
I’ve been lucky to see the world through a unique lens—as a former Peace Corps Volunteer, a graduate of Duke University, and someone who has traveled to over 55 countries. These experiences deeply influence how I teach economics, with real-world examples, a global perspective, and a passion for making these concepts relatable to everyone.
I can’t wait to guide you through these essential diagrams.
Let’s explore the fascinating intersection of economics and human behavior together.