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Coming and Going - Imports and Exports Throughout the World
Terms in this set (12)
The exchange of goods and services between nations across international borders.
An economy's ability to produce goods and services at a lower opportunity cost than that of trade partners.
Focusing our efforts on what we can produce at the lowest opportunity cost.
A product your home country acquires from another country.
A product produced in your home country and sold to consumers in other nations.
Specialization in trade
Nations must export goods they specialize in and use the money to import goods they do not produce.
Trade affects by opportunity cost
Nations concentrate on goods that have low opportunity cost to produce goods and ignore those that have a high opportunity costs to produce.
Factors that determine good or service a nation specializes in
The cost of labor
This is the cost of manufacturing that puts U.S. at a comparative disadvantage frequently.
Five biggest exporters to the U.S.
China, Canada, Mexico, Germany, and Japan.
Costs realized when a worker doesn't specialize
A worker wastes resources including time an energy producing items that result in less benefit than the cost.
Benefits realized when a worker does specialize
By specializing, a worker utilizes time and energy efficiently which results in greater freedom and productivity.
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