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19.6: Key Terms

Last updated

Jul 10, 2023
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- 19.5: The Benefits of Reducing Barriers to International Trade
- 19.7: Key Concepts and Summary

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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 of 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

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