Ch. 8 International Trade Flashcards
1
Q
What is autarky?
A
It is a situation in which a country does not trade with other countries
2
Q
What is factor intensity?
A
The measure of which factor is used in relatively greater quantities than other factors in production.
3
Q
What is the Hecksher-ohlin model?
A
a country has a comparative advantage in a good whose production is intensive in the factors that are abundantly available in that country.
