Microeconomics Ch. 8

can produce a good with a lower opportunity costs – basis of al trade. (can’t have in both products)

can produce more with the same amount of resources. (can have in both products)

reductions in a firm’s costs that result from an expansion in the size of an industry.

Qd-Qs

the use of trade barriers to shield domestic companies from foreign competition. (saving jobs, protecting high wages, national security)

limit imposed by gov’t on the quantity of a good that can be imported into a country.

when countries become more open to foreign trade and investment.

the ratio at which a country can trade its exports for imports from other countries.