Ch 6 Bus498

Absence of barriers to the free flow of goods and services between countires

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

An economic philosophy advocating that counties should simultaneously encourage exports and discourage imports

A situation in which an economic gain by one country results in an economic loss by another

A country has an absolute advantage in the production of a product when it is more efficient than any other country at producing it

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

A country's endowment with resources such as land, labor, and capital

Cost advantages associated with large-scale production

Advantages accruing to the first to enter a market