Define the following economic terms: comparative cost advantage, tariff, balance of trade, internal trade, and exchange rate.

here are the definitions for Question 8, part a):

• i) Comparative cost advantage: This occurs when a country can produce a good or service at a lower opportunity cost than another country. It means a country gives up less to produce that good compared to another country.
• ii) Tariff: A tariff is a tax imposed by a government on imported goods or services. It is used to protect domestic industries, generate revenue, or influence trade balances.
• iii) Balance of trade: This is the difference between a country's total value of exports and its total value of imports over a specific period. A trade surplus occurs when exports exceed imports, and a trade deficit occurs when imports exceed exports.
• iv) Internal trade: Also known as domestic trade, this refers to the exchange of goods and services within the geographical boundaries of a single country. It involves transactions between producers and consumers in different regions or states of the same nation.
• v) Exchange rate: The exchange rate is the value of one country's currency in relation to another country's currency. It determines how much of one currency can be exchanged for a unit of another currency.