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| Goods and service purchased from other countires are imports. |
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| Goods and services sold to other countries are exports |
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| Is the phenomenon of growing economic linkages among countries. |
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| The ricardian model of international trade |
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Definition
| analyzes international trade under the assumption that opprotunity costs are constant. |
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Definition
| Is a situation in which a country does not trade with other countries. |
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| The Factor intensity of a good is a measure of which factor is used in realativity greater quantities than other factors in production . |
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Definition
| a country has a comparative adavantage in a good whose production is intensive in the factors that are abundantly available in that country. |
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Definition
| shows how the quantity of a good demanded by domestic consumers depends on the price of that good. |
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| The domestic suppy curve shoes how the quantity of a good supplied by the domestic producers depends on the price of that good. |
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Definition
| The world price of a good is the price at which that good can be bought or sold abroad. |
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