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7 Cards in this Set
- Front
- Back
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Comparative Advantage
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can produce good more cheaply relative to other goods it produces than can its trading partners regardless of absolute advantage
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Absolute Advantage
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can produce good at lower absolute cost than its trading partners
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Capital mobility and comparative vs. absolute advantage
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Capitol and Labor mobility between nations is impossible. Cannot know if investment in another country would be profitable
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Internationalization
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increase in importance of relations between nations such as international treatise alliances, protocols. Basic unit of community and nation remain in tact
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Globalization
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global economic integration of formerly nationalized economies into one global economy through free trade and especially by free capital mobility and by easy migration. Erase borders for econ purposes.
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World Trade Organization
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Supports Globalization, trade agreements regulates trade
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Bretton woods institutions
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IMF - short term balance of payments financing
World Bank - lends money for development of countries |
