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9 Cards in this Set
- Front
- Back
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Free trade |
Situation which a government does not attempt to influence through quotas or duties what citizens can buy from another country, or what they can produce and sell in another country. |
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New Trade Theory |
Stresses that in some cases countries specialize in the production and export of particular products because in certain industries the world market can support only a limited number of firms. |
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Mercantilism |
It is in a country's best interest to maintain a trade surplus and export more then they import |
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zero-sum game |
Gain by one country results in a loss in another country. |
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Absolute Advantage |
When one country is more efficient in the production of a product than any other country producing it. |
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Constant Returns to Specialization |
Units of resources required to produce a good are assumed to remain constant no matter where one is on a country's production possibility frontier. |
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Factor Endowments |
The extent to which a country is endowed with such resources as land, labor, and capital. |
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Economies of Scale |
Unit cost reductions associated with a large scale of output |
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First-mover advantage |
Economic and strategic advantages that accrue to early entrants in an industry. |
