Economics 1021A/B Lecture Notes - Trade Route, Fundamental Interaction, Comparative Advantage

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Michael Parkin

Document Summary

Because we trade with people in other countries, the goods and services that we can buy and consume are not limited by what we can produce. Imports are the good and services that we buy from people in other countries. Exports are the goods and services we sell to people in other countries. In 2010, global exports and imports were trillion more than half the value of global production. In 2010, total canadian exports were billion, which is about 29 percent of the value of canadian production. In 2010, total canadian imports were billion, which is about 31 percent of the value of canadian production. Services are 13 percent of total canadian exports and 18 percent of total canadian imports. The fundamental force that generates trade between nations is comparative advantage. The basis for comparative trade is divergent opportunity costs between countries.