ECON 2213 Lecture Notes - Lecture 1: Absolute Advantage, International Trade, Comparative Advantage
Document Summary
The classical theory of trade : mercantilism, absolute advantage, comparative advantage and standard theory of trade. By the end of this unit, you should be able to: explain early classical theories of international trade, the law of comparative advantage, determine the basis for trade between nations, to apply the theory of opportunity cost. Ensure that you understand the key terms or phrases used in this unit as listed below: international economics, international trade. Introduction: trade is the voluntary exchange of goods, services, assets, or money person or organization and another. between one, international trade is trade between residents of two countries. For countries to trade with each other, there must be enough motivation for them to willingly engage in trade. International trade can be explained in various ways. Classical economists have developed various theories that explain the basis of trade between nations. This unit introduces to you some of the classical theories of grade.
