International Economic Issues Flashcards
1
Q
Factor endowment
A
The availability of capital enterprise, labour and land in an economy
2
Q
Absolute advantage
A
When a country with its given set of resources can produce more of a particular product than other country
3
Q
Opportunity cost ratio
A
The quantity of one product compared to the quantity of another product that has to sacrificed to produce it
4
Q
Comparative advantage
A
A situation where a country can produce a product at a lower opportunity cost than another country
5
Q
Free trade
A
International trade that is not restricted by taxes in imports and other policy tools designed to give domestic producers protection from competition from imports
6
Q
A
