International Trade
Iitйдт
Higher coupetifinenessprovides incentives for innovations
Difference in access to resources
д China 801 of rare earth resources
To
get foreign currency to be able to buygoods from other
countries
Access to cheapgoods services
Economies of scale
Allows countries to specialise
Greater choice
More efficientallocation of resources
Met early tradepolicy
Balance of Trade surpluses and the acclamation ofprecious metals
goods versus exports of raw materials
Exports of finished
Imports of finished goodsversus imports of raw materials
Mercantilistpolicies tariffs andquotas
Colonialism and war
Theory of an absolute advantage by Adam Smith
tableau outage if it canproduce more of a
than other countries using the want of resources
good sane
, фу Cars Bikes
ИК 2 24 absoluteadvantage in bikes
US 4 10 absoluteadvantage in cars
Outputwill
но в 34
specialisation
Outputwith 8 48
specialisation
Gaius вот 2 14
trade
For UK to benefit I cars 12 bikes
For Us to benefit I car 2.5 bikes
For both to benefit Icar worth between 2.5 and 12bikes
it outofbounds one of the countries is exploited
USA
S
G
a trade
io io so io its bikes
For both countries to benefit the terms of trade must lie between
the twoopportunity costs In this case I car must be worth
between 2,5 and 12 bikes The benefit is distributedevenly when
I car is worth 6 bikes
Iitйдт
Higher coupetifinenessprovides incentives for innovations
Difference in access to resources
д China 801 of rare earth resources
To
get foreign currency to be able to buygoods from other
countries
Access to cheapgoods services
Economies of scale
Allows countries to specialise
Greater choice
More efficientallocation of resources
Met early tradepolicy
Balance of Trade surpluses and the acclamation ofprecious metals
goods versus exports of raw materials
Exports of finished
Imports of finished goodsversus imports of raw materials
Mercantilistpolicies tariffs andquotas
Colonialism and war
Theory of an absolute advantage by Adam Smith
tableau outage if it canproduce more of a
than other countries using the want of resources
good sane
, фу Cars Bikes
ИК 2 24 absoluteadvantage in bikes
US 4 10 absoluteadvantage in cars
Outputwill
но в 34
specialisation
Outputwith 8 48
specialisation
Gaius вот 2 14
trade
For UK to benefit I cars 12 bikes
For Us to benefit I car 2.5 bikes
For both to benefit Icar worth between 2.5 and 12bikes
it outofbounds one of the countries is exploited
USA
S
G
a trade
io io so io its bikes
For both countries to benefit the terms of trade must lie between
the twoopportunity costs In this case I car must be worth
between 2,5 and 12 bikes The benefit is distributedevenly when
I car is worth 6 bikes
