Chapter 20 International Trade

Absolute Advantage

when one country can use fewer resources to produce a good compared to another country; when a country is more productive compared to another country

Gain From Trade

a country that can consume more than it can produce as a result of specialization and trade

Intra-Industry Trade

international trade of goods within the same industry

Splitting up the Value Chain

many of the different stages or producing a good happen in different geographic locations

Tariffs

taxes that governments place on imported goods

Value Chain

how a good is produced in stages