Primer 1: The Economics of International Trade

Economics trade

Economics trade


Specialisation can be applied to individuals, firms, machinery and technology, and to whole countries. International specialisation is increased when countries use their scarce resources to produce just a small range of products in high volume. Mass production allows a surplus of goods to be produced, which can then be exported. This means that goods and resources must be imported from other countries that have also specialised, and produced surpluses of their own.

What Is Trade Surplus?

In economics, the term trade-off is often expressed as an opportunity cost , which is the most preferred possible alternative. A trade-off involves a sacrifice that must be made to get a certain product or experience. A person gives up the opportunity to buy 'good B,' because they want to buy 'good A' instead. For a person going to a baseball game, their economic trade-off is the money and time spent at the ballpark, as compared to the alternative of watching the game at home and saving their money, plus the time spent driving to the ball game.

Economics | Center for Strategic and International Studies

When countries specialise they are likely to become more efficient over time. This is partly because a country 8767 s producers will become larger and exploit economies of scale. Faced by large global markets, firms may be encouraged to adopt mass production, and apply new technology.  This can provide a country with a price and non-price advantage over less specialised countries, making it increasingly competitive and improving its chances of exporting in the future.

Why do countries trade? - Economics Online

Once you are finished, you should be able to explain an economic trade-off and illustrate the concept with a few real-world examples.

Economics: Overview, Types, and Economic Indicators

Most of us don't have so much money that we are in a position to buy everything we desire. We must put thought into every purchase and how it affects our bank account. We also must think about what type of satisfaction that purchase will give us. As a result, to get one thing that we like, we usually have to give up another thing that we also may like. Making decisions requires trading off one item against another.

In economics, the term trade-off is often expressed as opportunity cost. A trade-off involves a sacrifice that must be made to obtain a desired product or experience. Understanding the trade-off for every decision you make helps ensure that you are using your resources (whether it's time, money or energy) wisely. Next time you decide to spend some extra money on a fancy dinner, think about the other things you could do with that money. Evaluating the trade-offs will help you feel good about your final decision.

Calculating Yield to Maturity Yield to Maturity (YTM), also called book yield or redemption, is the hypothetical interest rate or rate of return of a bond and other fixed-rate securities. The YTM is based on the .

Understanding Oil Trade Wars and What Drives Prices Oil is one commodity that is needed by many industries across the globe. A sudden drop in oil prices can be catastrophic for oil-producing nations and beneficial for .

What Is An Inverted Yield Curve Recession The yield curve is a visual illustration of yields for similar bonds that have varying maturities, also known as an interest rate term structure. In a standard yield .

A presentation of the use of precision agriculture in on-farm trials to enable data-intensive fertilizer management: Request Bullock NIFA Project Directors Meeting 8 August 7568.

​A presentation of a project that analyzes and explores the effectiveness of a CPMS system in relation to food waste: Request Hamilton Food Waste AFRI August 7568 Presentation.


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