Introduction/Possible Activities:

A. Students should demonstrate an understanding of the mechanics and benefits of trade by:
1. Defining absolute advantage.
2. Explaining why it is not in a nation’s best interest to produce entirely for itself.
3. Defining comparative advantage.
4. Calculating comparative advantage using the input and output method.
5. Explaining what conditions must be satisfied for trade to be beneficial.
6. Explaining the advantages of specialization in a comparative advantage product(s).
7. Stating the benefits of trade such as
a. Increased production.
b. Lower prices.
c. Greater efficiency.

Learning Activities:

1. Watch the video below and take notes.

2. Complete the following worksheet after having watched the video. Try from memory first before using your notes: