Ch 6 Bus498

  1. Free Trade
    Absence of barriers to the free flow of goods and services between countires
  2. New Trade Theory
    The observed patter of trade in the world economy may be due in part to the ability of firms in a given market to capture first-mover advantages
  3. Mercantilism
    An economic philosophy advocating that counties should simultaneously encourage exports and discourage imports
  4. Zero-Sum Game
    A situation in which an economic gain by one country results in an economic loss by another
  5. Absolute Advantage
    A country has an absolute advantage in the production of a product when it is more efficient than any other country at producing it
  6. Constant Returns to Specialization
    The units of resources required to produce a good are assumed to remain constant no matter where one is on a country's production possibility frontier
  7. Factor Endowments
    A country's endowment with resources such as land, labor, and capital
  8. Economies of Scale
    Cost advantages associated with large-scale production
  9. First-Mover Advantages
    Advantages accruing to the first to enter a market
Card Set
Ch 6 Bus498
bus498 Exam 2 Terms