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Absolute Advantage
The ability to produce the same quantity of a good or service using fewer resources per unit of time.
Comparative Advantage
A country having lower opportunity costs in the production of a good compared to another country.
Diversification
The process of expanding the range of products, services, or markets to reduce risk and enhance economic stability.
Free Trade
An absence of government intervention in international trade, resulting in no imposing restrictions of any kind on imports and exports.
International Trade
The exchange of goods and services between two or more countries.
Market share
The percentage of total sales in the market, which a firm is part of, that the firm generates.
Opportunity cost
The value of the next best option that must be forgone or sacrificed in order to acquire something else.
Resource allocation
Assigning available resources or factors of production to particular uses selected from various possible options.
Trade Liberalization
To free up international trade by removing trade barriers.