INTERNATIONAL TRADE 1ST EDITION
JOHN MCLAREN INSTRUCTOR MANUAL
FINAL STUDY GUIDE 2026 SOLVED
QUESTIONS FULLY CORRECT
⫸ Exports Answer: Goods and services sold by a country to foreign
markets.
⫸ Absolute Advantage Answer: The ability of a country or entity to
produce more of a good or service with the same amount of resources
than another country or entity.
⫸ Comparative Advantage Answer: The ability of a country or entity to
produce a good or service at a lower opportunity cost than another
country or entity.
⫸ Free Trade Answer: The unrestricted exchange of goods and services
between countries without tariffs or other barriers.
⫸ Free-Trade Agreements Answer: Treaties between two or more
countries to reduce or eliminate trade barriers, promoting free trade.
⫸ Quota Answer: A limit on the quantity of a good that can be imported
or exported during a given time period.
JOHN MCLAREN INSTRUCTOR MANUAL
FINAL STUDY GUIDE 2026 SOLVED
QUESTIONS FULLY CORRECT
⫸ Exports Answer: Goods and services sold by a country to foreign
markets.
⫸ Absolute Advantage Answer: The ability of a country or entity to
produce more of a good or service with the same amount of resources
than another country or entity.
⫸ Comparative Advantage Answer: The ability of a country or entity to
produce a good or service at a lower opportunity cost than another
country or entity.
⫸ Free Trade Answer: The unrestricted exchange of goods and services
between countries without tariffs or other barriers.
⫸ Free-Trade Agreements Answer: Treaties between two or more
countries to reduce or eliminate trade barriers, promoting free trade.
⫸ Quota Answer: A limit on the quantity of a good that can be imported
or exported during a given time period.
