Paramecium moves by
Paramecium moves by
Explanation
International trade allows specialization based on comparative advantage – countries produce what they make relatively most efficiently. Both parties benefit from trade.
Balance of payments: current account (goods, services, transfers) + capital account (investments). Surplus means more money coming in than going out.
Trade policies: free trade (no barriers), protectionism (tariffs, quotas, subsidies). Arguments for protection: infant industries, national security, employment. Against: inefficiency, retaliation, higher prices.