International Trade and Money summary[211581]2023

• International trade - --involves the exchange of goods or services between two countries. -• Factor endowment - --the factors of production that a country has available to produce goods and services. -• Specialisation - --- where a country specialises in the production of goods and services where they have a comparative advantage in production. They will then trade to get the goods and services that they do not specialise in. -• Absolute advantage* (HL only) - --- where a country is able to produce more output than other countries using the same input of factors of production. -• Comparative advantage* (HL only) - --where a country is able to produce a good at a lower opportunity cost of resources than another country. -• World Trade Organisation (WTO) - - --An international body that sets the rules for global trading and resolves disputes between its member countries. It also hosts negotiations concerning the reduction of trade barriers between its member nations. -• Free trade - --* - international trade that takes place without any barriers, such as tariffs, quotas, or subsidies. -• Tariff* - --Tariff* - a duty (tax) that is placed upon imports to protect domestic industries from foreign competition and to raise revenue for the government