Intro to Business › Section C · Competing in the global marketplace › Topic C.2
Why nations trade
Countries trade for the same reason people do: nobody is best placed to make everything. The idea of comparative advantage explains why trade can make both sides better off, and the debate over globalisation explains why not everyone feels the gain.
In this topic
- Could a country go it alone?
- Absolute advantage
- Comparative advantage
- Worked example: finding the advantages
- Worked example: the gains from trade
- Where advantage comes from, and why it moves
- Free trade and protectionism
- Why globalisation worries people
- Why globalisation also helps
- Common mistakes to avoid
- Key takeaways
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