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International Trade chapter in your book for a deeper understanding of the Law of Comparative Advantage

CH 21: Comparative Advantage Discussion

You may want to refer to the International Trade chapter in your book for a deeper understanding of the Law of Comparative Advantage.

When we talk about world trade often countries will use the concept of “comparative advantage” and trade to make everyone better off.

1. In your own words, provide an example of the Law of Comparative Advantage that you see/observe in the economy.

2. How is this different than Absolute Advantage?

3. In addition, please provide a REAL “personal” example of how the Law of Comparative Advantage applies to you individually. (For example, I have a comparative advantage in economics and my accountant has a comparative advantage in accounting. Therefore, I hire an accountant to do my taxes. WHY???) Think outside of the box here…

Please comment on 2 other postings…comment on their explanation and example. Did it adequately illustrate the concept? Is this something your professor could use in future classes to explain comparative advantage

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The earthquakes along the western margin of South America get deeper inland from the Pacific.

Global Distribution of Earthquakes

1. The earthquakes along the western margin of South America get deeper inland from the Pacific. What tectonic process is causing focal depths to occur in this pattern?

2. Earthquakes in the middle of the Atlantic Ocean occur at shallow depths. With what geologic feature are these earthquakes associated?

3. Are most of the earthquakes that occur along the western margin of North America shallow or deep focus?

4. How is the western margin of North America tectonically different from the western margin of South America?

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