Global Markets and International Trade · Global Markets

Absolute and Comparative Advantage

Explaining how countries can gain from trade by specializing in goods with lower opportunity costs.

Key Questions

  1. 1How can two countries both benefit from trade even if one is more efficient at producing everything?
  2. 2What determines a nation's comparative advantage in the high tech industry?
  3. 3Why do some industries lobby for protection despite the theoretical benefits of free trade?

MOE Syllabus Outcomes

MOE: International Trade and Theory of Comparative Advantage - S3
Level: Secondary 3
Subject: Economics
Unit: Global Markets and International Trade
Period: Global Markets

Suggested Methodologies

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