Activity 01
Simulation Game: Comparative Advantage Trading
Divide class into pairs representing countries with different production costs for two goods. Provide resource cards showing opportunity costs. Pairs negotiate trades over three rounds, tracking total output before and after. Debrief on efficiency gains.
Explain why countries specialize in producing specific goods.
Facilitation TipDuring the Simulation Game, assign roles clearly so students experience firsthand how comparative advantage drives trade decisions rather than absorbing it secondhand.
What to look forPresent students with two countries and two goods, along with production data. Ask them to calculate the opportunity cost for each country producing each good and identify which country has the comparative advantage for each.