5.04: Why Do Countries Trade?
|Specialization||Focusing on specific products for production in higher quantities|
|Advantage||Who can more efficiently use scarce resources, meaning the factors of production such as capital, labor, land, etc.|
|Absolute Advantage||When an individual, company, or country requires less physical resources than another to produce a particular good or service|
|Comparative Advantage||When a country has a lower opportunity cost than another country to produce a particular good or service|