UNIT 2: INTERNATIONAL TRADE

Purchase, sale, or exchange of goods and services across national borders

Sending good to another country for sale or trade

Bringing in goods from another country for sale or trade

Condition that results when the value of Nation's exports is greater than the value of its imports

Condition that results when the value of a country's imports is greater than the value of its exports

A trade theory which holds that a government can improve the economic well-being of the country but encouraging exports and stifling imports to accumulate wealth in the form of precious metals

A trade theory which holds that of government can improve the economic well-being of the country but encouraging exports and stifling imports

A trade theory which holds that Nations can increase the economic well-being by specializing in good that they can produce more efficiently than anyone else

A trade theory which holds that nation should produce those goods for which they have the greatest relative advantage

A trade theory which holds that Nations will produce and export products that use large amounts of production factors that they have in abundance and will import products requiring a large amount of production factors that they lack