Trade Theories Flashcards
1
Q
Encourage export and discourage import under the assumption of sum 0
A
Mercantilism
2
Q
The ability to produce more of a product or service
A
Absolute Advantage
3
Q
The ability to produce a good or service at a lower opportunity cost than a competitor
A
Comparative Advantage
4
Q
Efficiency is given by the abundance of a certain resource
A
Heckscher-Ohlin Theory
5
Q
Governments might have a role to play in promoting new industries based on the importance of moving to economies of scale and the importance of becoming first movers
A
New Trade Theory
