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Principles of Macroeconomics 3e

Key Terms

Principles of Macroeconomics 3eKey Terms

Key Terms

absolute advantage
when one country has more resources, more productive resources, or a natural endowment to produce a good compared to another country; when a country can produce more of a good compared to another country
gain from trade
a country that can consume more than it can produce as a result of specialization and trade
intra-industry trade
international trade of goods within the same industry
splitting up the value chain
many of the different stages of producing a good happen in different geographic locations
tariffs
taxes that governments place on imported goods
value chain
how a good is produced in stages
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