An absolute advantage is when a manufacturer can provide a greater quantity of a product or service for the same price or the same quantity at a lower price than its competitors.
According to the concept developed by Adam Smith, absolute advantage can be the basis for large profits from trade between producers of different goods with different absolute advantages.
Through specialization, division of labor and trade, producers with different absolute advantages can always win more than production and consumption separately.
Absolute advantage can be contrasted with comparative advantage, which is the ability to produce goods and services at lower opportunity costs.
Autarky refers to a state of self-sufficiency and is commonly used to describe countries or economies that seek to reduce their dependence on international trade.
The balance of trade (BOT) is the difference between the value of a country’s imports and exports over a given period and is the largest component of a country’s balance of payments (BOP).
The Bretton Woods Agreement and the system created a collective international currency exchange regime that operated from the mid-1940s to the early 1970s.
Cross elasticity of demand is an economic concept that measures the response of the quantity demanded of one good to a change in the price of another good.
Desperate workers are workers who have stopped looking for work because they did not find suitable employment options or were not shortlisted when applying for a job.
The causes of employee frustration are complex and varied.
Dollarization is when a country begins to recognize the US dollar as a medium of exchange or legal tender, along with or instead of the national currency.
Durable Goods Orders is a large-scale monthly survey conducted by the US Census Bureau that measures current industrial activity and is used by investors as an economic indicator.
The Dutch disease is a short description of the paradox that occurs when good news, such as the discovery of large oil reserves, wreaks havoc on a country’s economy as a whole.