Would like help with a short reply to this discussion.

Good evening,

Although it was a bit confusing I understood the overall concept that with trade each of us was able to specialize in what we had comparative advantage in and both benefited after trade.

The USA can benefits from focusing on comparative advantage in the items it specializes in and focus productions in those areas to remain competitive in the world market.

With the recent news of the death of queen Elizabeth II and the sudden drop of the Euro after the announcement will cost the British more for internationally traded items. The cost of trade will spike causing imports to cost more.

CNBC. (2022, September 8). Sterling Falls vs dollar, euro after death of queen Elizabeth. CNBC. Retrieved September 8, 2022, from https://www.cnbc.com/2022/09/08/forex-markets-dollar-powell-european-central-bank-interest-rates.html

• 2-2 Simulation.PNG(21.37 KB)