PPT-Comparative Advantage and Trade, Part 2

Terms of Trade Graph the Following PPCs Shirts millions Wheat millions of bushels China 25 50 USA 50 200 Values represent all resources spent on one good the other value is 0 Which country has an absolute advantage in shirts. A2 Economics. Aims and Objectives. Aim: . Understand the theory of absolute and comparative advantage.. Objectives: . • Define the theory of absolute . and comparative . advantage. .. Analyse the effects of specialisation. Introduction. Introduction. International Trade Growth. International Trade Milestones. Largest Exporting & Importing Countries. International Trade Drivers. International Trade Theories. The International Business Environment. EQ: How do we gain from trade?. What was the most important. document written in 1776?. written by. Adam Smith. The Father of Economics. The Wealth of Nations. He is my great, great, great, great, . License Agreement for Use of Electronic Resources. The illustrations and photographs in this PowerPoint are protected by copyright. Permission to use these materials is strictly limited to educational purposes associated with the course for which you have adopted . Why countries trade. Absolute advantage. A country has an absolute advantage when it can . produce more goods and services than other countries with the same level of inputs (lower cost/unit). Germany might be able to produce more cars than the UK with the same inputs and more . Lecture 17. Chapter 2, 7. Trade, and Comparative Advantage. 2017 Economics 101 CCC. content. Trade Terminology. Canada and Trade . Production Possibilities Frontier. Comparative & Absolute Advantage. Trade-offs, Comparative Advantage, and the Market System. Sept 28, 2017. 1. 1.1 . Flashback – . Three Key Economic Ideas . We interact with one another in markets.. Market. : A group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade.. Absolute Advantage. Absolute advantage is when someone is the best at doing something. America is the best at producing entertainment. Colt . Brennann. (Hawaii) is the best at throwing touchdown passes. The comparative can sometimes feel like a hard topic to tackle because you’ve never had a question like this before. . But try not to be . daunted! . Introduction to Comparative. Comparative simply means . 8.1 . The Production Possibilities Curve. 8.2 The Basis for Trade: . Comparative . Advantage. 8.3 Trade between States. 8.4 Trade between Countries. 8.5 Arguments against Free . Trade. Key Ideas. 1. The production possibilities curve tells us. Module 4-”Comparative Advantage and Trade” By. J.A.SACCO Absolute and Comparative Advantage Countries/Individuals trade to maximize production- specialization is the KEY! Absolute Advantage- One nation can produce more output with the same quantity of inputs (factors of production) as the other. Absolute and Comparative Advantage AP Macroeconomics Coach Saucedo Manvel High School They want goods Think of what we would do without if we didn’t trade. To make money. Nations trade for several reasons Arthur has no comparative advantage.. Ben should do both tasks because he has an absolute advantage in both.. Arthur has a comparative advantage in shearing sheep and Ben has a comparative advantage in milking goats.. family, never to attempt to make at home . what will cost him more to make than to . buy. The tailor does not attempt to make . his own shoes, but buys them of the . shoemaker. The shoemaker does not .