International economics Flashcards
(4 cards)
1
Q
What is Free Trade?
A
Trade of goods and services between countries without any restrictions or government intervention
2
Q
What is Protectionism?
A
Barriers that prevent the free trade of goods and services
3
Q
What is Absolute advantage?
A
A country has an absolute advantage over another when it is able to produce a good at lower cost/with fewer resources
4
Q
What is Comparative advantage?
A
A country has a comparative advantage over another when it is able to produce a good at lower opportunity cost
