INTERNATIONAL TRADE 1ST EDITION
JOHN MCLAREN INSTRUCTOR MANUAL
PRACTICE SCRIPT UPDATED 2026 TESTED
SOLUTIONS
⫸ Imports Answer: Goods coming into a country
⫸ Exports Answer: Goods shipped out of a country
⫸ Interdependence Answer: Nations rely on each other for goods they
can't produce or efficiently produce
⫸ Absolute advantage Answer: Occurs when a country can produce at a
lower unit cost than any other country
⫸ Comparative advantage Answer: Occurs when a country produces
more than one good at the lowest unit cost
⫸ Factors affecting production cost Answer: Infrastructure, access to
raw materials, education level of the workforce, cost of labor,
technology level of the country
⫸ Consumer benefits of international trade Answer: Higher quality
goods at lower prices and increased variety of goods
JOHN MCLAREN INSTRUCTOR MANUAL
PRACTICE SCRIPT UPDATED 2026 TESTED
SOLUTIONS
⫸ Imports Answer: Goods coming into a country
⫸ Exports Answer: Goods shipped out of a country
⫸ Interdependence Answer: Nations rely on each other for goods they
can't produce or efficiently produce
⫸ Absolute advantage Answer: Occurs when a country can produce at a
lower unit cost than any other country
⫸ Comparative advantage Answer: Occurs when a country produces
more than one good at the lowest unit cost
⫸ Factors affecting production cost Answer: Infrastructure, access to
raw materials, education level of the workforce, cost of labor,
technology level of the country
⫸ Consumer benefits of international trade Answer: Higher quality
goods at lower prices and increased variety of goods
