Lesson 15 Trade Theory, Agreements and Patterns

Lesson 15 Trade Theory, Agreements and Patterns - #15 Trade...

Info icon This preview shows pages 1–2. Sign up to view the full content.

#15: Trade Theory, Agreements and Patterns Key Terms: Globalization: The creation of a world economy caused by increased international trade, investment flows and the spread of multinational companies. Absolute Advantage: The capacity of one economy to produce a good or service with fewer resources than another. Comparative Advantage: The capacity of one economy to produce a good or service with comparatively fewer resources than another (having less opportunity cost). Relative Factor Endowment: The natural advantages, in terms of resources, that one nation or area has compared to another. Relative Factor Intensity: The advantage that one nation or area has over another in the way it uses its resources. Terms of Trade: The rate at which a country’s exports are exchanged for its imports. Dumping: The deliberate practice of selling a product internationally at a price lower than its domestic price. Tariff: A tax on an import levied by a nation; also called custom duty.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern