Module 02: Comparative Advantage: Sources
In this module, we will continue our exploration of globalization by examining the principle of comparative advantage, a fundamental concept in classical trade theory, and a major justification for free trade and globalization. We will analyze how comparative advantage explains why trade occurs and the benefits it brings to nations. Discussion Requirement
Comparative Advantage Around the World
Select a country of your choice (other than Saudi Arabia) and discuss its comparative advantage. What are the sources and the challenges?
What is the role of the government? What policies should the government implement to enhance the comparative advantage?
Directions:
Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate. Your initial post should address all components of the question with a 600 word limit.
Learning Outcomes
Understand how the law of comparative advantage forms the basis of trade theory and globalization.
Apply trade theory concepts in both verbal and graphical formats.
Readings
Required: Chapter 2 in International Economics
Krist, W. (n.d.). Chapter 3: Trade Agreements and Economic Theory. Wilson Center. Retrieved October 11, 2023, from https://www.wilsoncenter.org/chapter-3-trade-agreements-and-economic-theory
Recommended: Chapter 2 PowerPoint slides – International Economics
Gnangnon, S. (2020). Effect of the internet on services export diversification. Journal of Economic Integration, 35(3), 519-558. Retrieved from https://www.e-jei.org/upload/JEI_35_3_519_558_2013600227.pdf