Definitions
When a nation is the only source of a particular product or it can make more of a product using fewer resources than other countries.
How many types of trade barriers are there?
2
Comparative advantage
When a country can produce a product at a lower opportunity cost compared to another nation
define benefits from international trade
an advantage or a good outcome that results from a situation, action, or thing
Opportunity cost:
the value of the next best alternative you give up when you make a choice – going to school and spending lots of money for a degree but making more afterwards, or going to work right out of high school.
Name some Major World Markets:
North America Europe Africa Pacific/Asia
define barriers of trade
Keep firms from selling to one another in foreign markets.
Name some emerging world markets
1. China 2. India 3. Brazil 4. South Korea 5. Mexico 6. Indonesia 7. Saudi Arabia 8. Türkiye 9. Taiwan 10.Poland
What are some examples of fostering trade
World Trade Organization – Uruguay Round, World Bank, International Monetary Fund, Other Trading Blocs (EU, USMCA, ASEAN, Mercosur, AfCFTA, BRICS, APEC)
What are the two types of trade barriers and define them
Natural barriers: can be either physical or cultural, such as weather, distance.
Tariff barriers: Make imported products less attractive to buyers than domestic products.