Benefits
Because each country can concentrate on producing the good in which it has a comparative advantage, total world production __________ (Rises or lowers), making a _____________ (Higher or Lower) standard of living in both nations.
What is Rises & Higher
Goods and services purchased from abroad and goods and services sold abroad
What are Imports and Exports
What is Brexit
What is the withdrawal of Great Britain from the EU
Who is the WTO
What is the World Trade Organization
What advantage produces a good or service for a lower opportunity cost than other countries?
What is Comparative Advantage
Is the belief that when a country with high wages imports goods produced by workers who are paid low wages, hurts the standard of living of workers in the importing country TRUE OR FALSE
What is FALSE
**Poor exporting countries would be much poorer than they are if they were not able to export goods
Reference to a situation in which a country does not trade with other countries
What is Autarky
How will Brexit affect the EU and Great Britain
What is weaken Great Britain and weaken integration forces in EU
The purpose of the WTO
What is to help producers of goods and services, exporters, and importers conduct their business and to help trade flow smoothly, frets, fairly, and predictably.
True or False: China and other Asian countries are known to have an absolute advantage in manufacturing due to low labor cost.
True
How does international trade lower prices in the US?
What is companies can import inexpensive raw materials and consumers can purchase items at a lower world price
When businesses hire people in another country to preform various tasks
What is Offshore Outsourcing
What commodity will be affected by President Trump's sanctions on Iran?
What is Gas
Name 4 countries who are apart of the EU
Great Britain, Germany, Italy, France, Sweden, Croatia, Poland, Spain, Denmark, Ireland, Austria, Portugal, Hungary, Greece.
Whats the difference between comparative and absolute advantage?
Nations makes a product at a higher quality and faster rathe than another is absolute and comparative is one nation having a lower opportunity cost than another price good.