Chap 20

Question 1

when one country can use fewer resources to produce a good compared to another country; when a country is more productive compared to another country

Answer 1

absolute advantage

Question 2

a country that can consume more than it can produces as a result of specialization and trade

Answer 2

gain from trade

Question 3

international trade of goods within the same industry

Answer 3

intra-industry trade

Question 4

many of the different stages of producing a good happen in different geographic locations

Answer 4

splitting up the value chain

Question 5

taxes that governments place on imported goods

Answer 5

tariffs

Question 6

how a good is produced in stages

Answer 6

value chain