05.

04 Trade Analysis—Template
Name _Your Name Here____________________ Instructor________________________________

Use the numbers on the table to complete the charts below.

Country A Country B Country C Country D

Country United States Developing Developing Developed Developed
CORN 2 6 8 2 4
(Worker hours to produce one unit)
CITRUS 4 10 10 6 8
(Worker hours to produce one unit)
APPAREL 2 4 6 2 2
(Worker hours to produce one unit)
COMPUTER SOFTWARE 4 12 8 8 4
(Worker hours to produce one unit)

Table 1: Complete a trade analysis for agricultural products. Choose which country from the table above.

Number of additional
worker hours to produce one
unit of citrus instead of one
Corn Citrus unit of corn
United States
Developing Country ___
Developed Country ___

Table 2: Complete a trade analysis for industrial products.

Number of additional
worker hours to produce
Computer one unit of computer
Apparel Software software instead of apparel
United States
Developing Country ___
Developed Country ___

1. Analysis—Using 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 (U.S. or other), 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.

Your answer here.

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 (U.S. or other), the product, and data to support
your claim.

Your answer here.

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.

Your answer here.