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Terms: comparative advantage, economic development, G7 nations, strong dollar versus weak dollar.
Comparative advantage: A nation's ability to produce a good at a lower opportunity cost than others. This is the basis for beneficial trade, even if not absolutely more efficient.
Economic development: A multidimensional process improving living standards, including income growth, education, health, and reduced inequality, not just GDP expansion.
G7 nations: An informal group of seven advanced major economies—Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
Strong dollar versus weak dollar: A strong dollar buys more foreign currency and imports, but weakens exports. A weak dollar does the opposite, boosting exports but making imports costlier.
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