International Business - Chapter 2
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Created by:
blacksoume on February 13, 2012
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International Trade and Foreign Direct Investment
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6 terms
Terms | Definitions |
|---|---|
 Mercantilism | A country's wealth was determined by the amount of its gold and silver holdings. |
| Protectionism | Nations promoted exports by imposing trade barriers on imports |
| Absolute advantage | The ability of a country to produce a good more efficiently than another nation. |
| Comparative advantage | A country product a product better and more efficiently than it does other goods. |
| Factor proportions theory | - Countries would produce & export goods that required resources or factors that were in great supply and, therefore, cheaper production factors. - In contrast, countries would import goods that required resources that were in short supply, but higher demand. |
| Leontief Paradox | ... |
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