05.

04 why do countries trade

Economic-01-20-2022

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 tables below 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) 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

Corn Citrus unit of citrus instead of one unit of corn

United 2 8 2
States

Developing 6 10 4
Country A

Developed 8 10 2
Country D
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 produce

Computer one unit of computer software instead of
Apparel Software apparel

United 2 4 2
States

Developing 4 12 8
Country A

Developed 6 8 2
Country D

2. Analysis—Using the data you collected, answer each of the following analysis questions in
well-written paragraphs in your own words.

A. The United States takes less time than other countries to produce
corn, citrus fruits, clothing and software. Absolute advantage is also
when a country requires fewer physical resources than another to
produce a particular good or service. Knowing the information gives
the United States an absolute advantage

B. In other countries, it takes more than six hours to produce one

citrus, whereas an American worker takes four hours. This
information gives the United States a comparative advantage over
other countries in terms of time period.
C. A comparative advantage is when each country that trades with
another country has a lower opportunity cost than another country
to produce a particular good or service that must be sold because of
the fact that it is efficient in producing that particular good.
Benefits.