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Absolute advantage: The ability to produce a good at lower cost, in terms of labor, than another country.

We then consider how good is this classic model as a description of the real political process...Abbreviations: CCCN: Customs Cooperation Council Nomenclature CPI: Consumer price index EC: European Communities ECU: European Currency Unit EEC: European Economic Community EU: European Union LDC: Least Developed Country FDI: Foreign Direct Investment FIR: Factor intensity reversal FTA: Free trade area GATT: General Agreement on Tariffs and Trade GDP: Gross domestic product GMO: Genetically modified organism ICA: International commodity agreement ITA: International Trade Administration ITC: International Trade Commission NAFTA: North American Free Trade Agreement NGO: Non-governmental organization NIC: Newly Industrializing Country NTB: Nontariff barrier MNC: Multinational Corporation MNE: Multinational Enterprise OECD: Organization for Economic Co-operation and Development SDR: Special Drawing Right TRIP: Trade-Related Intellectual Property Rights UNCTAD: United Nations Conference on Trade and Development VER: Voluntary export restraint WTO: World Trade Organization Abandonment value: The value of a project if the project's assets were sold externally; or alternatively, its opportunity value if the assets were employed elsewhere in the firm.ABC method of inventory control: Method that controls expensive inventory items more closely than less expensive items.We discuss how to build the idea of reputation into game theory; in particular, in setting like this where a threat or promise would otherwise not be credible. We develop a simple model of bargaining, starting from an ultimatum game (one person makes the other a take it or leave it offer), and building up to alternating offer bargaining (where players can make counter-offers). We consider games that have both simultaneous and sequential components, combining ideas from before and after the midterm.We represent what a player does not know within a game using an information set: a collection of nodes...

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We ask what kinds of strategies are evolutionarily stable, and how this idea from biology relates to concepts from economics like domination and Nash...

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