International Trade (Economics)

Recall cards on international trade. What absolute and comparative advantage mean, why a country's comparative advantage lies where its opportunity cost is lowest, and how specialization raises total world output. Why even a country with an absolute advantage in every good still gains from trade, and why trade is mutually beneficial only within the range of the two countries' opportunity costs. Intra-industry trade between similar economies, value chains and splitting them across locations, and how economies of scale coexist with variety. And the benefits of lowering trade barriers: tariffs, the World Trade Organization, the Doha Round, and who gains most from freer trade.