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Why do we trade?


1Trade  _____ trading with outside countries
2Merchantilism  _____ tax on trade
3Free trade _____ collective value of all you own
4Absolute advantage  _____ the value of the country's exports are more valuable than the imports
5Comparative advantage  _____ exchanging goods and services for something in return
6Wealth  _____ limits on trade
7international trade  _____ you can produce more of a good or service than someone else
8WTO  _____ you can produce a good at a lower opportunity cost than someone else
9Heckscher-Ohlin theory  _____ World Trade Organization
10Tariff  _____ countries will benefit more if they trade with a similar country
11Quotas  _____ ban on trade with another country
12Embargo  _____ the ability to trade with whomever you want

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