Products beyond the raw material stage that are used in the production of finished products. Eg, chemicals, stone and metals
1 of 8
Absolute Advantage?
Where a country using a given resources input is able to produce more than other countries with the same input
2 of 8
Comparative Advantage?
Where a country can produce a good with a lower input cost than other countries
3 of 8
Strategic Value?
Extreme importance to a country - may be required in circumstances like war
4 of 8
Trade Embargoes?
Prohibitation of the export and import of certain types of products
5 of 8
Marshall - Lerner Condition?
Devaluation or depreciation of a currency will lead to an overall imporvement in the current account as long as the combined price elasticities of demand of exports and imports exceed one
6 of 8
Specific Tax?
A tax levied at a fixed rate per unit
7 of 8
Ad-volorem?
A tax which is a percentage of the price of the unit
8 of 8
Other cards in this set
Card 2
Front
Absolute Advantage?
Back
Where a country using a given resources input is able to produce more than other countries with the same input
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