Terms of Trade and the Gains from Trade | AP Macroeconomics | Khan Academy

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In this video, we explore how we can use opportunity costs to determine who has comparative advantage in producing a good. By specializing in the production of a good that a country has comparative advantage in, and trading for the other good, both countries have the potential to benefit from the exchange. We can also figure out a trading price (also known as the "terms of trade") which would make both countries willing to trade.

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AP Macroeconomics on Khan Academy: Welcome to Economics! In this lesson we'll define Economic and introduce some of the fundamental tools and perspectives economists use to understand the world around us!

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YouTube url:	https://www.youtube.com/watch?v=C-xLUS5JGIM&list=PLSQl0a2vh4HAc8iB3btIAOK3Km8GsUoI6&index=3
Created:	17. 6. 2020 02:38:34

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Terms of Trade and the Gains from Trade | AP Macroeconomics | Khan Academy