International trade (key words)

absoslute advantage

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Terms in this set (16)

absoslute advantage

if one contry is more productive in producing one good than another country it has an

comparative advantage

the ability to produce a good at a lower opportunity cost than another producer

Exchange of goods and services

international trade

the exchange of goods and services beyond borders between companies of different nations

policy, which does not restrict imports and exports through tarrifs or other trade barriers

The growing integration of the world's economies; The increasing social, technological, political and economic interdependence and interaction between people, firms and entire economies around the world.

opportunity cost

benefit given up when chosen one alternative over another

per unit opportunity cost

benefit given up when chosen one alternative over another per unit or product

A focus on a particular activity or area of study, so you can become an expert

division of labour

separation of tasks, so that partizipants can specialize