MCS 1000 Chapter Notes - Chapter 7: Canadian Food Inspection Agency, Voluntary Export Restraints, Export Subsidy

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 1000
• Professor: Sergio Meza

Document Summary

The goods and services that we buy from other countries are our imports, and the goods and services that we sell to people in other countries are our exports. Comparative advantage is the fundamental force that drives international trade. Comparative advantage is a situation in which a person can perform an activity or produce a good or service at a lower opportunity cost than anyone else. We can define national comparative advantage as a situation in which a nation can perform an activity or produce a good or service at a lower opportunity cost than any other nation. Winners, losers, and the net gain from trade. We measure the gains and losses from imports by examining their effect on consumer surplus, producer surplus, and total surplus. In the importing country the winners are those who surplus increases and the losers are those who surplus decreases.