ECN 204 Lecture Notes - Lecture 17: Absolute Advantage, Natural Rubber, Demand Curve
16 Aug 2017
School
Department
Course
Professor
Document Summary
Canada and world trade: volume, exports are about 28% of canadian gdp. Canada has a trade deficit in services in 2014: canada imports some of the same categories of goods that it exports, called intra-industry trade, ca(cid:374)ada"s e(cid:454)po(cid:396)t a(cid:374)d i(cid:373)po(cid:396)t t(cid:396)ade is (cid:373)ai(cid:374)l(cid:455) (cid:449)ith othe(cid:396) i(cid:374)dust(cid:396)iall(cid:455) ad(cid:448)a(cid:374)(cid:272)ed nations. Rapid trade growth: transportation technology, communications technology, general decline in tariffs. The economic basis for trade: why do nations trade, the distribution of resources is uneven, efficient production requires different technologies or resource combinations, products are differentiated as to quality and other non-price other non-price attributes. Absolute advantage: a country is said to have an absolute advantage over other producers for a product if it is the most efficient producer of that product. Comparative advantage: a country is said to have a comparative advantage over other producers of a product if it can produce the product at a lower opportunity cost.
