What you’ll learn to do: summarize the principles of competitive advantage and comparative advantage
Back to bananas! Who has the advantage in the banana market? Hawaii or Brazil? You should recall from our study of economics that supply and demand influence not only price but quantity supplied, so, in the banana market, where are you going to pay less for a banana? Correct—Brazil! In this module we will examine more closely the concept of advantage in international trade. Once you have a foundation, you will get to try your hand at maximizing your advantage to increase the wealth of your own island nation.
The learning activities for this section include:
- Reading: Absolute and Comparative Advantage
- Game: Trade Ruler
- Self Check: Principles of Advantage
Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.