INTLBUS - SEMIFINALS

raises the real incomes of trading countries.

is simply inflation-adjusted income, the amount of disposable income available to consumers (e.g., households and individuals).

is the sum of the value added by all the goods and services produced within a particular country.

There are at least two reasons why trade has an important influence upon the income distribution:

cannot be transferred immediately and without costs from one industry to another.

use different factors and a change in the production mix a country offers will reduce the demand for some of the production factors and increase for others.

are produced using a mix of the factors of production-land, labor, and capital.

is any resource that is used by firms to produce goods and services.

Ricardian model of trade was developed by

first formal model of international trade.