ECON 1050 Chapter 7: ECON Chapter 7
27 Oct 2015
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Document Summary
Due to trade with other countries, the goods and services that we can buy and consume are not limited by what we can produce. Imports: goods and services that we buy from other countries. Exports: the goods and services that we sell to people in other countries. International trade today: the us is the world"s largest international trader and accounts for 10% of the world"s exports and 13% of the world"s imports, germany is second and china is third. Comparative advantage: is the fundamental force that drives international trade. Is a situation in which a person can perform an activity or produce a good or service at a lower opportunity cost than anyone else. National comparative advantage: situation in which a nation can perform an activity or produce a good or service at a lower opportunity cost than any other nation.
