What you’ll learn4 learning objectivesChoose one objective for a focused lesson, or study the complete topic.6.1.1Absolute vs comparative advantage• Distinction between absolute and comparative advantageSyllabus objective6.1.2Specialisation and free trade• Benefits of specialisation and free trade (trade liberalisation), including the trading possibility curveSyllabus objective6.1.3Terms of trade• Exports, imports and the terms of trade:- measurement of the terms of trade- causes of changes in the terms of trade- impact of changes in the terms of tradeSyllabus objective6.1.4Limits of advantage theories• Limitations of the theories of absolute and comparative advantageSyllabus objective