4.1 International trade Flashcards
1
Q
free trade
A
Trade of goods and services between countries without any restrictions or government intervention
2
Q
Protectionism
A
Barriers that prevent the free trade of goods and services
3
Q
Absolute advantage
A
A country has an absolute advantage over another when it is able to produce a good at lower cost/with fewer resources
4
Q
Comparative advantage
A
A country has a comparative advantage over another when it is able to produce a good at lower opportunity cost
