This book is structured to guide the students through the core areas of international economics. We begin with the fundamental theories of international trade, exploring why nations trade and how they benefit, moving from classical insights to modern explanations that account for intra-industry trade and dynamic technological shifts. We then delve into the realm of trade policy, examining the various tools governments use to influence trade flows and their economic consequences. The second half of the book shifts focus to international finance, unravelling the complexities of foreign exchange markets, balance of payments, international capital movements, and the macroeconomic policies used to manage external balances. Throughout these discussions, the Malaysian experience will serve as a recurring thread, illustrating how theoretical models play out in a dynamic, developing economy.