Activity 01
Simulation Game: Comparative Advantage Game
Assign small groups as countries with production sheets showing costs for two goods. Have them produce independently, then trade based on comparative advantages. Conclude with calculations of total output gains and group sharing.
Explain the fundamental reasons why countries trade.
Facilitation TipDuring the Comparative Advantage Game, circulate and ask each pair to explain their production decisions before they trade to ensure they connect opportunity cost to their choices.
What to look forPose the question: 'Imagine Canada decided to stop all international trade tomorrow. What are two specific goods or services that would become much harder to get or more expensive, and why?' Facilitate a brief class discussion, guiding students to connect their answers to concepts like comparative advantage and specialization.