Econ 102 Buckley Lesson 09 Terms Lesson 9 International Trade Terms and Definitions Autarky No trade Production equals consumption No purchases of foreign made goods and no sales of goods to foreigners World Price Price of a good that prevails in the world market for a good Kaldor Improvement A change that improves the welfare of one party enough that the winners would be able to compensate the losers and everyone would be better off Absolute Advantage Able to produce more with a given amount of inputs Comparative Advantage Able to produce at a lower opportunity cost Tariff A tax on goods produced abroad and sold domestically Import Quota A limitation on the number of units that can be imported Page 1 of 1