- absolute advantage
- 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
- gain from trade
- a country that can consume more than it can produce as a result of specialization and trade
- intra-industry trade
- international trade of goods within the same industry
- splitting up the value chain
- many of the different stages of producing a good happen in different geographic locations
- tariffs
- taxes that governments place on imported goods
- value chain
- how a good is produced in stages