comparative advantage.notebook PRINCIPLE OF COMPARATIVE ADVANTAGE Lesson objective 1) understand the meaning of comparative advantage and numerically demonstrate comparative advantage 2)understand the meaning of free trade 3) use the trading possibility curve to demonstrate the gains from specialisation and trading comparative advantage.notebook key terms comparative advantage: This is a situation where a country can produce a product at a lower opportunity cost than another country comparative advantage.notebook 1) From the table determine which country has absolute advantage in the production of a) shirts b) coats 2) from the table determine which country has comparative advantage in the production of a) shirts b) coats comparative advantage.notebook use the link to understand how to calculate domestic opportunity cost ratio. https:// www.youtube.com/watch?v=Okc8Il_CUSA comparative advantage.notebook Activity two international trade is based on the pricnciple of comparative but explain why comparative advantage is not a sufficient explanation of the current pattern of global trade comparative advantage.notebook Activity 3 self assessment task 4.9 page 103 comparative advantage.notebook Key term Free trade: This refers to international trade not restricted by tariffs and other protectionist measures Trading possibility curve: This is a diagram showing the effects of a country specialising and trading comparative advantage.notebook Activity 1 what are the benefits of free trade? comparative advantage.notebook Trading possibility curve Interpret the information carried by this graph comparative advantage.notebook Activity two what information does the trading possibility curve below provide comparative advantage.notebook Group activity self­assessment task 4.10 page 105 comparative advantage.notebook conclusion In two sentences , write the what you learnt from this lesson.
