Oct 23, 2011
Economics – Textbook Notes
How Global Markets Work
The goods and services we buy from other countries are out imports. The goods and
services we sell to people in other countries are out exports.
International Trade – What drives it?
National comparative advantage is 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.
This same principle applies to trade among nations.
Because China has a comparative advantage at producing t-shirts and Canada has
a comparative advantage at producing regional jets, the people of both countries