A Budget deficit Results from a country's ability to produce a good or service more B. efficiently than others Comparative Advantage C. Retaliatory measure Imports exceed exports D. Example of value chain E Trade deficit occurs Currency appreciation F. Tariffs and quotas Trade restrictions G. Leads to a decline in export and a rise in import Absolute Advantage H. Competitive advantage Specialization I Results from a country's ability to produce a good or service at a Currency depreciation lower opportunity cost than others David Ricardo Encourages export In August 2018, the U.S. Imported $297 million and exported K Intra-industry trade $703 million worth of nuts L When country moves resources to producing goods and services The U.S. has recently imposed duties on Chinese steel accusing in which it has comparative advantages the country of supplying the product at artificially low prices M. Dumping which are below the cost of production. If China is in fact doing this, the practice is called Since efficiency is the basis for trade, countries must focus on N. producing goods and services in which they have absolute advantage 7 Since efficiency is the basis for trade, countries must focus on N. producing goods and services inhishich they have absolute advantage. 0. All countries including those which may be relatively inefficient benefit from specialization and free trade