international Flashcards
1
Q
comparative advantage
A
the ability to produce a good at a lower opportunity cost than other producers
2
Q
absolute advantage
A
the ability to produce more of a good or service using the same amount of resources
3
Q
sources of comparative advantage
A
- natural resources and climate
- labour capital
- govt policies allowing for a comparitive advantage
4
Q
why don’t we see complete specialisation?
A
- not all goods and services can be traded world wide
- production of most goods involves increasing the opportunity cost
- diversity and security are highly valued
5
Q
protectionism
A
use of restrictions to protect domestic producer from international
6
Q
types of restriction
A
- tarrif
- quota
- government support
- health and safety requirement
7
Q
arguments for protectionism
A
- national security
- diversity
- employment
- infant industry
- unfair comp
- gains from trade not distributed
- currency manipulation
8
Q
why do oppose globalisation
A
- destroy culture
- enviro+ health problems
- exploitation workers
- hollow out middle class
