Absolute advantage-producer has this if they can produce more of a good or service than the other with the same amount of resources
             Ex. Ecuador has a good source of climate and terrain for growing coffee, cocoa, and bananas, therefore if has an absolute advantage over the United States in producing those products
             Comparative advantage-one can produce a good or service at a lower opportunity cost, but both produce the same product
             Ex. The United States can produce coffee, but it is more expensive because we do not have the best resources for it, therefore Ecuador has a comparative advantage over the United States
             Labored intensive- employ large amount of labor relative to the amount of capital (machines, tools, buildings)
             Ex. Philippines produce clothing and textiles
             *Each country engages in trade to sell its surplus production to acquire what it doesn't produce*
             Limited specialization-specialization in producing goods or services according to comparative advantage when specializations is not complete
             Increasing costs-increase in average production costs as quantity of output increases
             Multilateral trade negotiations-trade negotiations among a number of countries at the same time
             Ex.- United States, China, and the Phillippines all agree to and export or import together
             Quota-a limit on the quantity or value of a good that can be imported in a given time period
             Ex. The United States only wants to receive so many toys from China at a given time.
             -This prevents unwanted surpluses of products
             -used so we do not receive an abundance, and other countries cannot overproduce a product
             MFN-most favored nation-this is a provision in a trade agreement that extends lower tariffs granted to one country over all other countries that accord to a similar agreement
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