Across
- 2. politics into trade theory—trade still has costs—there are losers from trade
- 6. 16th and 17th century- encouraging exports, discouraging imports, for government interference, for trade surplus ( more exports than imports) – zero sum game—survival of the fittest, always be the winner
- 7. Father of free trade and economics—tariffs are wasteful
- 8. economic and strategic advantages that increase economies of scales and barriers of entry for new companies – help firms gain competitive advantage (Government intervention)
- 11. Paul Krugman-intra trading—2 countries produce the same thing and still trade—taste and preferences matter to consumers
- 12. Lower prices for consumers, focuses on each country to specialize on the products that can be produced most efficiently
Down
- 1. specialization
- 3. 1950’s- added the 4th factor—innovation/ technology – changing trade balance
- 4. Relativity—no absolute only more or less
- 5. Michael Porter-justifies certain interventions to help firm become more competitive
- 9. adds to adam smith – efficiency is based on labor productivity (First factor)
- 10. added more factors – Land, Labor, and Capital
- 13. no barriers to trade, no tariffs, quota, no government interference—positive sum game—everyone working together