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Why Is International Trade Theory and Policy Considered as Microeconomic

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Why is International Trade Theory and Policy considered as Microeconomic aspect of International Economics and International Finance is considered as the Macroeconomic aspect of International Finance?


Definitions:

Groupthink

A psychological phenomenon where the desire for harmony in a decision-making group overrides a realistic appraisal of alternatives.

Power Distance

The extent to which less powerful members of institutions and organizations accept and expect that power is distributed unequally.

Unequal Distribution

The uneven allocation of resources, wealth, opportunities, or rights among different groups or individuals in a society.

Ingroup Bias

The tendency to favor and have more positive attitudes towards one's own group compared to outgroups, often leading to partiality and prejudice.

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