Period:_____Name:______________________

International Trade

1. Which country has the absolute advantage in the production of each good? (circle)

2. Which country has the comparative advantage in the production of each good? (ll
in the chart)








3. Which country has the absolute advantage in the production of each good? (circle)

4. Which country has the comparative advantage in the production of each good? (ll in
the chart)








Production in one day Bushels of Wheat Crates of Melons
Canada 50 100
Mexico 10 50
Opportunity Cost Bushels of Wheat Crates of Melons
Canada
Mexico
Production in one day Bags of Rice Chickens
Thailand 74 13
India 20 90
Opportunity Cost Bags of Rice Chickens
Thailand
India
5. Which country has the absolute advantage in the production of each good? (circle)

6. Which country has the comparative advantage in the production of each good? (ll in
the chart)












7. Pick any of the three scenarios above, and calculate the total production of goods in
ONE YEAR if the countries involved specialize based on lowest opportunity cost.
Production in one day Bottles of Mustard Jars of Pickles
Papua New Guinea 10 11
Australia 36 60
New Zealand 40 29
Opportunity Cost Bottles of Mustard Jars of Pickles
Papua New Guinea
Australia
New Zealand