The absence of government barriers to the free flow of goods and services between countries.
An economic philosophy advocating that countries should simultaneously encourage exports and discourage imports.
A situation in which an economic gain by one country results in an economic loss by another.
A country has an absolute advantage in the production of a product when it is more efficient than any other country in producing it.
The extent to which a country is endowed with such resources as land, labor, and capital.
Economies of Scale
Cost advantages associated with large-scale production.
Advantages accruing to the first to enter a market.
National accounts that track both payments to and receipts from foreigners.
In the balance of payments, records transactions involving the export or import of goods and services.
Current Accounts Deficit
Occurs when a country imports more goods, services and income than it exports
Current Accounts Surplus
Occurs when a country exports more goods, services and income than it imports.
Records onetime changes in the stock of assets.
Records transactions that involve the purchase or sale of assets.