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2. ( Empirical Exercise) Is the pattern of trade consistent with the idea of comparative ad- vantage? Sometimes it is difficult to say which nation
2. ( Empirical Exercise) Is the pattern of trade consistent with the idea of comparative ad- vantage? Sometimes it is difficult to say which nation has a comparative advantage in producing a given item, but lets look at trade (export and import) in the following items between the U.S. and a few other countries to see if the pattern of trade fits what we expect. . United States: computers and machine tools; Brazil: coffee and agricultural exports . United States: computers and machine tools; South Korea: manufactured goods . United States: computers and machine tools; Venezuela: fuel and natural resources Go to the U.S. Census Bureaus site on to bilateral trade statistics for the U.S. and an- other country: https://www.census.gov/foreign-trade/statistics/country/site/index.html and down- load the database. 2 (a) Try the above examples or investigate other countries and goods that might be inter- esting. Report your findings and discuss your result. (Hint: Recommended steps to follow for this exercise.) i. Download the database "2015-Present" from "Exports and Imports Totals 1-digit SITC." ii. Open the data file using MS Excel (or any comparable software programs to open spreadsheets that allows basic data analysis) and select the Data tab on top. iii. Click on Filter. You will then see little arrows appear on the first row in each cell. iv. Click on the arrow in the cell next to Country. Here, you can arrange the data in a way that allows you to view only the country of interest. More specifically, unselect Select All then scroll down to find the country you want to see and make the selection. v. Column E shows the value of exports using data from January. Click on the arrow next to ExportsFASValueBasis.Jan and click descending which will then rearrange the U.S. export data for the country of interest. vi. Follow the same steps using Column F for U.S. import data
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