Chapter 1 IE

0 5 flashcards jakubgrzesiak

start learning

Question		Answer
agglomeration economies start learning		a rich country specializes in manufacturing niches and gains productivity through groups of firms clustered together, some producing the same product and others connected by vertical linkages
globalization start learning		the process of greater interdependence among countries and their citizens
law of comparative advantage start learning		when each nation specializes in the production of that good in which it has a relative advantage, the total output of each good increases; thus, all countries can realize welfare gains
openness start learning		the ratio of a nation’s exports and imports as a percentage of its gross domestic product (GDP)
economic interdependence start learning		all aspects of a nation’s economy are linked to the economies of its trading partners