• 7.2: Absolute Advantage and Comparative Advantage

    • Wikipedia: "Absolute Advantage" URL

      Read this article about absolute advantage.

    • MIT: Roberto Rigobon's "Applied Macro- and International Economics, L18: The Debate on Globalization" File

      Read these lecture notes, which cover important points about why countries trade. These lecture notes will clarify perspectives on the topics of absolute advantage and comparative advantage. This resource will also reinforce how gains from trade accrue from comparative advantage and specialization.

    • Absolute Advantage, Comparative Advantage, and International Trade Quiz

      Please attempt this quiz as a way to check your understanding of the fundamental concepts behind international trade, namely comparative advantage and the decision to enter trade.

      Notes:

      • There is no minimum required score to pass this assessment, and your score on this assessment will not factor into your overall course grade.
      • This assessment is designed to prepare you for the Final Exam that will determine your course grade. Upon submission of your assessment you will be provided with the correct answers and/or other feedback meant to help in your understanding of the topics being assessed.
      • You may attempt this assessment as many times as needed, whenever you would like.