International economics and regional integration: Trade, exchange rates, policy and African economic transformation

International economics explains why borders alter economic choices even when firms, consumers and technologies are increasingly connected. This chapter develops the trade and open-economy macroeconomic foundations required for rigorous analysis of cross-border exchange and regional integration. It moves from absolute and comparative advantage through Ricardian, factor-endowment, specific-factors, new-trade, heterogeneous-firm and gravity perspectives; then examines gains from trade, distributional adjustment, tariffs, quotas, subsidies, non-tariff measures and industrial policy. The chapter links trade to the balance of payments, capital flows, exchange-rate determination, currency regimes, the policy trilemma, inflation pass-through and external stability. Regional integration is analyzed through trade creation and diversion, economies of scale, optimum-currency-area reasoning, sovereignty, subsidiarity and policy autonomy. AfCFTA and the East African Community anchor the African analysis, while the European Single Market and Brexit provide a comparative global case. Christian moral reasoning evaluates integration by truth, justice, productive stewardship, dignity, local agency and long-term human flourishing rather than by trade volume alone.

Keywords: international economics; comparative advantage; trade policy; exchange rates; balance of payments; regional integration; AfCFTA; East African Community; industrial policy; African economic transformation