An important role in the global economy certainly plays international trade. Removing barriers to international trade contributes to better competitiveness and economic growth. This paper is focused on foreign merchandise trade of the European Union countries towards third countries (ie. excluding intra-trade).The aim of this paper is to identify important features of the development of foreign merchandise trade of the European Union in 2010 in the context of economic crisis in the years 2007 - 2009, to determine the potential effects of merchandise trade on solution of the consequences of the crisis and also provide an outline of the economic competitiveness of the European Union and prospects of the future development of EU foreign merchandise trade. The method of work comprises the analysis of statistical data linked to considerations arising from the current social, economic and political development.

Cette thèse vise à combler le fossé entre l'analyse de l’économie réelle et l’économie monétaire dans la théorie du commerce international. À cette fin, j’analyse l’effet Cantillon, i.e. l'impact différentiel de l'expansion monétaire sur les prix, la production, les patrimoines et la structure du commerce international. Dans la première partie, je passe en revue la littérature en économie internationale, à partir du 19e siècle jusqu’aux théories contemporaines. Dans la deuxième partie, j’utilise les contributions de Ludwig von Mises à la théorie de la monnaie et des cycles économiques comme fondement de l'analyse de l’impact de l'expansion monétaire sur le commerce international. Dans le chapitre 4, j’examine la relation entre le développement du marché financier et le commerce. Dans le chapitre 5, je discute l'impact de l'inflation monétaire sur les modes de financement du commerce et sur la transmission des cycles économiques. Les principaux résultats de ma recherche sont que l'expansion monétaire modifie la direction, la composition, le volume et la valeur des flux commerciaux et de capitaux. J’applique ce cadre théorétique dans le chapitre 6, pour expliquer l'évolution des ventes de marchandises et des flux de capitaux au cours des dernières décennies, et d'illustrer mes conclusions avec les données statistiques de la plus récente crise financière et de l'effondrement du commerce mondial de 2008-2009. Dans la troisième partie, j’analyse l’impact de l'expansion monétaire sur l’organisation industrielle internationale et la distribution mondiale des revenus et des patrimoines. Dans la section finale, je présente les implications majeures de mon analyse pour le commerce international et les politiques monétaires, et son importance pour des recherches futures. / This dissertation endeavors to offer a way to bridge the gap between the analysis of real and monetary phenomena in international economics. To this end, I analyze Cantillon effects, i.e. the differential impact of monetary expansion on prices, production, wealth, and the pattern of international trade. In Part I review the standard literature in international economics from the 19th century to contemporary theories. In Part II I use the contributions of Ludwig von Mises to the theory of money and business cycles as the foundation for the analysis of monetary expansion and international trade. In Chapter 4, I focus on the relationship between financial development and international trade. In Chapter 5, I analyze the impact of inflation and5fractional reserve banking on trade finance, and the transmission of business cycles across national borders. The main findings of my research are that monetary expansion modifies the direction, composition, volume and value of trade and capital flows. I apply this framework in Chapter 6, to explain the evolution of merchandise and capital flows over the last decades, and illustrate my findings with statistical evidence from the most recent financial crisis and the global trade collapse of 2008-2009. In Part III I analyze the impact of monetary expansion on international industrial organization, and the global distribution of income and wealth. In the concluding section, I draw out the major implications of my analysis for international trade and monetary policies, and its importance for future research.

Abstract of thesis submitted in partial fulfilment of the requirements for the Degree of Master of Commerce and Management Dynamics of macroeconomic variables in Fiji : a cointegrated VAR analysis By Shiu Raj Singh The objective of this study is to examine how macroeconomic variables of Fiji inter-relate with aggregate demand and co-determine one another using a vector autoregression (VAR) approach. This study did not use a prior theoretical framework but instead used economic justification for selection of variables. It was found that fiscal policy, which is generally used as a stabilisation tool, did not have a positive effect on real Gross Domestic Product (GDP) growth in the short term. Effects on GDP growth were positive over the long term but not statistically significant. Furthermore, expansionary fiscal policy caused inflationary pressures. Fiji has a fixed exchange rate regime, therefore, it was expected that the focus of monetary policy would be the maintenance of foreign reserves. It was, however, found that monetary expansion in the short term resulted in positive effects on real GDP growth and resulted in inflation. The long term effects of monetary policy on real GDP growth were negative, which are explained by the fixed exchange rate regime, endogenous determination of money supply by the central bank, an unsophisticated financial market and, perhaps, an incomplete transmission of the policy. Both merchandise trade and visitor arrivals growth were found to positively contribute to short term and long term economic growth. Political instability was found not to have significant direct effects on real GDP growth but caused a significant decline in visitor arrivals which then negatively affected economic growth in the short term.