Why does comparative advantage matter more than absolute advantage for trade?
Step 1: Go to the internet and find an news article posted within the last month that discusses Comparative Advantage in International Trade, summarize key points and post in Discussions area.
Please note that the goal of this discussion is to read, understand, and discuss recent news using microeconomic terminology. The article should be from an on-line newspaper or magazine. Materials posted on educational websites, like www.thebalance.com, www.khanacademy.org , and so on, are not considered news articles even if they were recently updated and contain material related to the discussion topic.
Step 2: In your initial response to the topic you have to answer all questions:
Does the protection of one domestic industry harm another? Please explain.
Why does comparative advantage matter more than absolute advantage for trade? Please explain.
Summarize key points of the article that you found in Step 2 of the discussion assignment, and post in the Discussions area.
Reflection – the students also should include a paragraph in the initial response in their own words, using economic terminology, reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace.