Supply & Demand

Which country was the leading exporter of goods in 2004?

Trade creates wealth and raises a country’s standard of living. 

A country assesses its opportunity cost, if its low it may choose to produce instead of import

International trade is the _____ exchange of goods & services by people of different nations. 

Comparative Advantage =

We live in an interdependent global comm. & our economy is shaped by policies of other nations

Absolute Advantage = 

Countries specialize & produce products in which they have a comparative advantage.

What can Countries do if they cannot produce products they need?