The comparative advantage stems from the ability to produce goods and services at low opportunity costs, which is influenced by how
International Trade
How Do Imports Impact the Economy?
Imports impact the economy in several aspects. For example, at the micro level, imports affect competition by increasing supply in the domestic
What Are the Factors Affecting Imports?
Availability is a factor affecting imports. We import goods from abroad because they are unavailable in the domestic market. For example, the
Reasons Why International Trade Exists
International trade exists for several reasons. First, differences in demand underlie trade. Certain products we want are not produced in the
What are the Benefits of International Trade?
Increased access to cheaper and more varied goods and services is key benefits of international trade. Thus, it allows us to increase well-being. We
Trade Sanction: Meaning, Reasons, Types, Pros, Cons
What's it: Trade sanction is formal penalties for stopping or reducing the purchase or sale of goods to a country. The sanctioner may be a
Comparative Advantage: Meaning, Assumptions, Examples, Criticisms
What's it: Comparative advantage is a favorable position arising from producing goods and services at a lower opportunity cost. This concept is
Terms of Trade: Meaning, How to Calculate, Impacts
What's it: Terms of trade (TOT) is the ratio between export prices and import prices. Because international trade involves various goods and
Trade Balance: Formula, Calculation, Impacts, and Affecting Factors
What's it: Trade balance is the difference between the country's export value and its import over a certain period. When exports' value exceeds
Trade Surplus: How to Calculate, Affecting Factors, Pros, Cons
What's it: A trade surplus is when the value of a country's exports exceeds its imports. Or in other words, the country reports a positive trade
Trade Restriction: Reasons, Types, and Impacts
What's is: Trade restriction refers to the various barriers that make the flow of goods and services between countries immobile. If the barriers
International Trade: Why It Matters, Advantages, Disadvantages
What's it: International trade refers to trade of goods and services across countries. It consists of exports and imports. Export means you sell