Trade Theories Flashcards

1
Q

Encourage export and discourage import under the assumption of sum 0

A

Mercantilism

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2
Q

The ability to produce more of a product or service

A

Absolute Advantage

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3
Q

The ability to produce a good or service at a lower opportunity cost than a competitor

A

Comparative Advantage

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4
Q

Efficiency is given by the abundance of a certain resource

A

Heckscher-Ohlin Theory

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5
Q

Governments might have a role to play in promoting new industries based on the importance of moving to economies of scale and the importance of becoming first movers

A

New Trade Theory

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