KEY TERMS

import

export

technology

resources

offshoring

proximity

Ricardian model

trade pattern

free-trade area

natural resources

labor resources

capital

factors of production

absolute advantage

comparative advantage

marginal product of labor (MPL)

production possibilities frontier (PPF)

opportunity cost

indifference curves

utility

relative price

international trade equilibrium

world price line

gains from trade

export supply curve

import demand curve

terms of trade