Globalization and international trade concepts, including trade blocs, tariffs, and comparative advantage.
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- Comparative advantage
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The ability of one country to produce a good at a lower opportunity cost than another country- Ricardo's comparative advantage theory
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Countries should specialize in goods where they have comparative advantage and trade for others- Absolute advantage
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The ability to produce more output with the same input of resources compared to another country- Tariff
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A tax imposed on imported goods to make them more expensive than domestic alternatives- Trade bloc
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A group of countries that have agreed to reduce or eliminate trade barriers among themselves- European Union
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A trade bloc and political union of 27 member states with a common market and single currency- USMCA
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United States-Mexico-Canada Agreement, a free trade agreement that replaced NAFTA in 2020- ASEAN
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Association of Southeast Asian Nations, a regional trade bloc of ten Southeast Asian countries founded in 1967- Dumping
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Selling goods in a foreign market at a price lower than the cost of production- Import quota
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A government limit on the quantity of a good that can be imported during a specific period- Foreign Direct Investment (FDI)
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Investment by a firm or individual from one country into assets or operations in another country- Multinational corporation
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A company that owns or controls operations in multiple countries- Heckscher-Ohlin theorem
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Countries export goods that intensively use their abundant factors of production- Factor endowments
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The amount and type of productive resources available in a country, such as labor, capital, or natural resources- Economic specialization
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When a country focuses production on goods and services where it has competitive advantage
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