week3

Julliana Carandang · 13問 · 1年前

通報

問題一覧

exchanging goods and services between two people or entities.

Trade

Exchange between people or entities in two different countries.

International Trade

Father of Modern Economics Theory of Absolute Advantage

Adam Smith

Classical Economist Theory of Comparative Advantage

David Ricardo

This theory stated that a country’s wealth was determined by the amount of its gold and silver holdings.

Mercantilism

value of exports are greater than the imports.

Trade Surplus

value of imports is greater than the exports.

Trade Deficit

large amount of gold and silver.

Bullion

protecting the export industries through customs tariffs, quotas etc.

Protectionism

It is when international trade is free from barriers such as tariffs, quotas or other restrictions, and can flourish on its natural growth.

Free Trade

can produce a good or service better, faster, more efficiently at a greater volume and with fewer resources than others.

Theory of Absolute Advantage

Refers to the country’s capability to produce specific goods or manufacture multiple types of goods with limited resources at lower marginal cost and opportunity cost.

Theory of Comparative Advantage

described as the sacrifice of the highest value of a good that one must forego to obtain another.

Opportunity Cost

determined that the cost of any factor or resource was a function of supply and demand.

Hecksher-Ohlin Theory

cost incurred in producing an additional unit of a product

Marginal Cost

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