International trade: Absolute and comparative advantage

Post date: Apr 17, 2012 3:31:31 PM

Assignment:To be Uploaded as chapter 25 Research:

(1.Define) ,( 2.Give your opinion ), (3.what countries do they affect,) (4. When were they started) & (5. The Economic Impact.)

• Research: North American Free Trade Agreement "Nafta" :

• Research: World Trade Organization " WTO"

Additional Research

• Trade Barriers and Agreements- Give three examples

• Currency exchange rate -Explain

Video's Below:

1. International trade: Absolute and comparative advantage :

2. Economics on the go :Chapter 25 International Trade:

Definition of 'Absolute Advantage'

The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.Read more: http://www.investopedia.com/terms/a/absoluteadvantage.asp#ixzz1sOfzE2Tt

Definition of 'Comparative Advantage'

A situation in which a country, individual, company or region can produce a good at a lower opportunity cost than a competitor.Read more: http://www.investopedia.com/terms/c/comparativeadvantage.asp#ixzz1sOfR5LH4

What Determines the Foreign Exchange Rate?

School of Pipsology " Currency Trading"

International Global Business Strategy Sep 09

McDonalds Global and Local Strategy.flv

Use the information from the worksheet to consider the following seven questions.

• 1. How can the presence or absence of natural resources and arable land affect a nation’s economy, regardless of the type of economic system?

  3. How can life expectancy and literacy rates affect the quality of labor in the economy?

  5. How can fertility rates affect the use of scarce resources?

  7. How can GDP per capita and poverty rates indicate standards of living in each system?

  9. How can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?

  11. How can electricity, communication, and transportation facilities indicate the potential for industrial growth?

  13. Considering the lack of natural resources, the labor problems, and the lack of capital and little industrialization of developing countries, how can developing countries develop? (Hint: Look at Economy - Overview for Chad).