1/31/22, 5:16 PM 05.04 Trade AnalysisTemplate

05.04 Trade AnalysisTemplate

Name

__________________________________________Instructor___________________________________

1. Use the chart in the lesson to identify one developing country (choose Country A or Country B) and one developed country (choose Country C or Country D) to compare to the United States. Use the tablesbelow to record data from the chart in the lesson for each country. Then respond to the analysis questions.

Additional research is not required to complete this assignment. Please use only the information provided in the chart in the lesson for countries A, B, C, D, and the United States.

Table 1: Identify one developing country (A or B) and one developed country (C or D) country along with the United States. Complete a trade analysis for agricultural products.

Hint: Number of additional worker hours to produce one unit of citrus instead of one unit of corn = number of worker hours to produce one unit of citrus - number of worker hours to produce one unit of corn

			Number of additional worker hours to
			produce one unit of citrus instead of
	Corn	Citrus	one unit of corn
United States	2	4	2
Developing	8
Country__		10	2
Developed			4
Country__	2	6

Table 2: Identify one developing country and one developed country along with the United States.

Complete a trade analysis for industrial products.

			Number of additional worker hours to
		Computer	produce one unit of computer
	Apparel	Software	software instead of apparel
United States	2	4	2
Developing			2
Country __	6	8
Developed Country	2
__		8	6

1. AnalysisUsing the data you collected, answer each of the following analysis questions in well-written paragraphs in your own words.

A. Identify an example of absolute advantage relative to the United States from your data tables. Be sure to identify which country has absolute advantage (United States or country A, B, C, or D), the product, and data to support your claim. Tip: When considering absolute and comparative advantage, worker hours to produce one unit is a reflection of productivity.

B. Identify an example of comparative advantage relative to the United States from your data tables. Be sure to identify which country has comparative advantage (United States or country A, B, C, or D), the product, and data to support your claim.

C. Explain why most trade occurs because of comparative advantage. Be sure to provide examples from the data tables or from the lesson to support your answer.