Taxes - taxes are the most important method by which governments

fun their activities

Countries imposed high tariffs on imports
Comparative advantage: being able to produce something at a
lower opportunity cost than someone else
Autarky, a situation in which they did not trade with other countries,
these would also be the relative prices in each country;
Terms of trade is the ratio at which a country can trade its exports for
imports from other countries.
Comparative advantage can derive from a variety of natural and man
made sources:
-

Climate and natural resources

o Some nations are better suited to particular types of
production particularly important for agridultural goods
Relative abundance of labor and or capital
o Some nations have lots of high or low skilled workers or
relatively uch or little infractur