Comparative Advantage Explored

Outcomes 4.1.1 - 4.1.7

Today’s outcomes:•4.1.5 Given a case study or a situation, draw conclusions about which nation has the absolute and/or comparative advantage in producing a product. (a) •4.1.6 Explain, using examples, how most trade occurs because of a comparative advantage in the

production of a particular good or service. (a) •4.1.7 Analyze the barriers and restrictions on domestic and international trade. (a)

4.1.5 Given a case study or a situation, draw conclusions about which nation has the absolute advantage and/or comparative

advantage in producing a product. (a)

• Perhaps the best examples of this I have found come from the wikipedia page.

• Let’s take a look at these right from the website so that you know where to look come assessment time.

• http://en.wikipedia.org/wiki/Comparative_advantage

4.1.6 Explain, using examples, how most trade occurs because of a comparative advantage in the production of a particular good or service. (a)

• For example, we import electronics to Canada, but we export wood/lumber.

• Another example, China import automobiles, export a lot of clothing.

• Japan exports automobiles, but imports oil.

4.1.7 Analyze the barriers and restrictions on domestic and international trade. (a)

• Tarriff: a tax on a good that crosses a baorder.• Trade routes: ships, trucks, trains may have to travel

in specific ways, places, routes or methods.• Protectionist laws.• War or conflict.• Trade agreements• Currency trading issues• People may have restrictions on movement.