KeyTermsChapter3 - Chapter 3 key terms absolute advantage a...

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Chapter 3 key terms absolute advantage – a monopoly on producing a specific product or is able to produce it more efficiently than all other countries. Balance of trade – the total value of a nation's exports compared to its imports measured over a particular period. balance of payments – the difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flows coming into or leaving a country from other factors such as tourism, foreign aid, military expenditures, and foreign investment. common market – (also called a trading bloc) is a regional group of countries that have a common external tariff, no internal tariffs, and the coordination of laws to facilitate exchange among member countries. comparative advantage theory – states that a country should sell to other countries those products that it produces most effectively and efficiently, and buy from other countries those products it cannot produce as effectively or efficiently.
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KeyTermsChapter3 - Chapter 3 key terms absolute advantage a...

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