Activity 01
Simulation Game: Comparative Advantage Trade
Distribute cards listing production costs for goods like cloth and wheat to small groups. Instruct groups to specialise based on lowest opportunity cost, then negotiate trades. Conclude with a class discussion on efficiency gains.
Explain the concept of comparative advantage in international trade.
Facilitation TipDuring the simulation game, assign each group a country profile with clear productivity data and limit negotiation time to 10 minutes to create urgency and focus.
What to look forPose this question to small groups: 'Imagine India and Brazil can both produce coffee and rice. Brazil can produce more of both. Explain, using the concept of comparative advantage, why both countries would still benefit from trading with each other. What specific goods should each country focus on exporting?'