Nation’s relative ability to design, produce, distribute, or service products within an international trading context while earning increasing returns on its resources
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Portfolio Investment
The purchase of stocks and bonds to obtain a return on the funds invested
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Direct Investment
The purchase of sufficient stock in a firm to obtain significant management control
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Trade Deficit
The amount by which the value of imports into a nation exceeds the value of exports
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Trade Surplus
The amount by which the value of a nation’s exports exceeds the value of its imports
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Absolute Advantage
The ability to produce an increased number of goods and services at better quality than competitors
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Comparative Advantage
An economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners