A Trade Possibility Curve (TPC) illustrates the maximum combinations of goods and services that a country can consume
Tag: free international trade
terms of trade
The terms of trade (TOT) represent the ratio of a country’s average export prices to its average import
comparative advantage
Comparative advantage exists when a country or entity can produce a particular good or service at a lower
absolute advantage
Absolute advantage refers to a country’s (or individual’s) ability to produce a specific good or service using fewer