Which theory states that countries should specialize in producing and exporting goods in which they have a comparative advantage?

What is the term used to describe the situation when a country can produce a good at a lower opportunity cost than any other country?

Which policy aims to protect domestic industries from foreign competition by imposing tariffs or quotas on imported goods?

The concept of (PPP) or Purchasing Power Parity states that the exchange rate between two currencies should be equal to the (\frac{P_A}{P_B}), where (P_A) and (P_B) are the prices of a basket of goods in countries (A) and (B), respectively.

What is the term used to describe the situation when the exchange rate between two currencies is overvalued, leading to a decrease in exports and an increase in imports?

Which trade policy aims to promote exports and restrict imports to achieve a favorable balance of trade?

The (HOV) or Home Market Effect states that a country's domestic market size positively affects its (\frac{1}{\sigma}), where (\sigma) is the elasticity of substitution between domestic and foreign goods.

What is the term used to describe the situation when a country's exports exceed its imports, resulting in a positive balance of trade?

Which trade policy aims to reduce trade barriers and promote free flow of goods and services between countries?

The (HOS) or Heckscher-Ohlin-Samuelson model explains how differences in (\frac{K}{L}), where (K) is capital and (L) is labor, between countries determine their comparative advantage in producing different goods.

What is the term used to describe the situation when a country's imports exceed its exports, resulting in a negative balance of trade?

Which trade policy aims to promote domestic industries by providing subsidies or other forms of financial assistance?

The (DD) or Dixit-Dixit-Stiglitz model explains how product differentiation and increasing returns to scale can lead to multiple equilibria in trade patterns.

What is the term used to describe the situation when a country's currency is undervalued, leading to an increase in exports and a decrease in imports?

Which trade policy aims to promote economic growth and development by attracting foreign investment and technology?