First, assume that you wish to export your company's products to a country that does not buy from you right now. Discuss the advantages of focusing attention on a nation that is already a sizable purchaser of goods coming from the exporter's home country.

Second, discuss the theory of absolute advantage and how it explains the basis for trade between nations. Compare this to the theory of comparative advantage. Now consider the company level of analysis.

Finally, discuss a real-life example (not from your textbook) of a company from a country that is able to trade successfully due to comparative advantage despite the fact that it does not have an absolute advantage in the same area.