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MR07 International Trade - Coggle Diagram
MR07 International Trade
What
Exchange
Capital
Across Borders
Goods & Services
Allows specialization
Lower cost
Pros
Choices
Employment
Efficiency
Economic growth
Total output
Simple Model
Assumptions
Factor mobility
No
Trade barriers
Transport costs
Cost
Constant
Two
Countries
Commodities
Cons
Dependence
Domestic industries
Structural unemployment
Advantage
Comparative
Opportunity cost
Lower
Absolute
Productivity
Higher
Free Trade Agreements
Legally binding agreement between 2 or more countries
Reduce or eliminate trade barriers
Facilitate cross-border movement of goods & services
Bilateral
Between 2 nations
Multilateral
3 or more nations
Others
Preferential
Customs Unions
European Union
Regional
ASEAN FTA
Benefits
IP protection
Business travel
Investment Protection
Standards & Qualifications
Mutual recognition
Services
Market access
Government procurement
Opportunity to bid
Goods
Tariff concession