Cambridge AS Level Economics -6.1 The reasons for international trade
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6.1 The reasons for international trade
6.1.1 distinction between absolute and comparative advantage
6.1.2 benefits of specialisation and free trade (trade liberalisation), including the trading possibility curve
6.1.3 exports, imports and the terms of trade:
• measurement of the terms of trade
• causes of changes in the terms of trade
• impact of changes in the terms of trade
6.1.4 limitations of the theories of absolute and comparative advantage
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