EC120 Lecture Notes - Lecture 1: Comparative Advantage, Market Failure, Beer In Canada
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EC120 Full Course Notes
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Document Summary
World price the price of a good that prevails in the world market for that. Comparative advantage basically determines whether a country is going to good be an importer or exporter of a good. The gains and losses of an exporting country. When a country allow trade and becomes an exporter of a good, domestic producers of the good are better off and domestic consumers of the good are worse off. Trade raises the economics well-being of a nation in the sense that the gains of the winners exceed the losses of the losers. The gains and losses of an importing country. When a country allows trade and becomes an importer of a good, domestic consumers of the good are better off, and domestic producers of the good are worse off. Trade raises the economic well-being of a nation in the sense that the gains of the winners exceed the losses of the losers.
