Countries can fix exchange rates by controlling the flow of this, and the idea that countries engaging in this should specialize in productions with low opportunity costs is comparative advantage.
One effect in this economic concept explains the Penn Effect in its model of productivity and is co-named for Bela Balassa. A model analogizing this to gravity was developed by Jan Tinbergen. Another model describing this concept can be simplified to the 2x2x2 model and assumes that there are no barriers to it and that transportation costs are zero. That model, which links the use derived from it to differences in factor endowments and intensities, is the Hecksher-Olin Model. Countries can fix exchange rates by controlling the flow of this, and the idea that countries engaging in this should specialize in productions with low opportunity costs is comparative advantage. For 10 points, name this transfer of ownership of goods and services between entities, which comes in a "free" variety.
One effect in this economic concept explains the Penn Effect in its model of productivity and is co-named for Bela Balassa.
international trade [or trade flow; or free trade]