Advantages and Disadvantages of Trade (Grade 11 NSC Matric Economics): Flashcards
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Absolute advantage definition
Absolute advantage definition
Producing with fewer resources & lower cost than other nations
Comparative advantage definition
Comparative advantage definition
Focus on what you produce most efficiently vs other options
Who has absolute advantage in manufacturing?
Who has absolute advantage in manufacturing?
Developed countries (more capital & highly-skilled workers)
Germany's absolute advantage example
Germany's absolute advantage example
Cars: advanced factories, skilled engineers, efficient systems
Can a country benefit from trade without absolute advantage?
Can a country benefit from trade without absolute advantage?
Yes, through comparative advantage & specialisation
How does trade promote economic growth?
How does trade promote economic growth?
Attracts foreign investment, increases govt revenue & infrastructure
Employment benefits of international trade
Employment benefits of international trade
More jobs, higher per capita income, better living standards
Global awareness benefit of trade
Global awareness benefit of trade
Countries work together on poverty, climate & health challenges
Unsustained growth issue in trade
Unsustained growth issue in trade
Benefits not distributed fairly, don't reach poorest people
Capital movement problems in trade
Capital movement problems in trade
Currency instability, asset bubbles, volatility, vulnerability