Ibus 370 Study guides, Class notes & Summaries

Mercantilism (mid-16th century England) - ANSWER-It is in the best interests of a country to maintain a trade surplus, even if this means government intervention (maximize exports, minimize imports). (Sell more abroad and buy less) Absolute Advantage (Adam Smith 1776) - ANSWER-Countries should specialize in, or focus on, producing and exporting products which they have an absolute advantage in (they are more efficient at producing that product than any other country) Comparative Advantage ...