Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Standard view
Full view
of .
Look up keyword
Like this
0 of .
Results for:
No results containing your search query
P. 1
Global Econ - Intro to Trade - lecture

Global Econ - Intro to Trade - lecture

Ratings: (0)|Views: 21|Likes:
Published by Katherine Sauer
overview of international trade basics
overview of international trade basics

More info:

Categories:Types, School Work
Published by: Katherine Sauer on Jun 16, 2010
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PPT, PDF, TXT or read online from Scribd
See more
See less





International Trade: Basics
Dr. Katherine Sauer Global Economic IssuesECON 241
I. Why do nations trade?Why do nations export?-individuals/firms produce more than can be consumedat home-sellers could receive a higher price in a foreign marketWhy do nations import?-some goods can¶t be produced at home (or not enough)-some goods are produced at a lower cost or moreefficiently elsewhere-consumers like variety
II. Absolute and Comparative AdvantageDue to differences in supply conditions, a country may be ableto produce more of a good at a lower cost.-superior technology-large factor (resource) endowmentsAbsolute advantageis the ability to produce a good at the lowestcost.It implies a potential trade pattern.ex: tropical countries produce and export bananascoastal countries produce and export seafoodIt gives an incentive to specialize in a good and export it.

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->