Economics
Textbooks
Boundless Economics
International Trade
Economics Textbooks Boundless Economics International Trade
Economics Textbooks Boundless Economics
Economics Textbooks
Economics

Section 1

Introduction to International Trade

Book Version 3
By Boundless
Boundless Economics
Economics
by Boundless
View the full table of contents
7 concepts
Thumbnail
Reasons for Trade

Countries benefit when they specialize in producing goods for which they have a comparative advantage and engage in trade for other goods.

Thumbnail
Understanding Production Possibilities

The production possibility frontier shows the combinations of output that could be produced using available inputs.

Thumbnail
Defining Absolute Advantage

A country has an absolute advantage in the production of a good when it can produce it more efficiently than other countries.

Thumbnail
Defining Comparative Advantage

A country has a comparative advantage over another when it can produce a good or service at a lower opportunity cost.

Thumbnail
Absolute Advantage Versus Comparative Advantage

Absolute advantage refers to differences in productivity of nations, while comparative advantage refers to differences in opportunity costs.

Benefits of Specialization

Specialization leads to greater economic efficiency and consumer benefits.

Thumbnail
Relationship Between Specialization and Trade

Comparative advantage is the driving force of specialization and trade.

Subjects
  • Accounting
  • Algebra
  • Art History
  • Biology
  • Business
  • Calculus
  • Chemistry
  • Communications
  • Economics
  • Finance
  • Management
  • Marketing
  • Microbiology
  • Physics
  • Physiology
  • Political Science
  • Psychology
  • Sociology
  • Statistics
  • U.S. History
  • World History
  • Writing

Except where noted, content and user contributions on this site are licensed under CC BY-SA 4.0 with attribution required.