Econ 7 and 9
By behund, Updated
This storyboard does not have a description.
Hey, I'm the President of India and I want to trade with Ireland, can you help me?
Absolutely, you should probably look at the comparative advantage of both countries.
Well, what will the comparative advantage tell me?
The Comparative will tell you what you, India, should make for yourself and what you should import from Ireland.
The two products are pizza and ice cream. I can produce 8 pizzas and 4 ice creams. While Ireland only produces 6 pizzas and 1 ice cream.
Well, you would have the comparative advantage in ice cream, but Ireland have the comparative advantage in pizza.
Okay, so what should I trade?
Well you should make your own pizza but buy ice cream from Ireland. But your range of value is 1/6 to 1/4, do not trade below or above that range.
Wow, you really know a lot about Economics, thank you for helping me and most importantly helping India.
You're quite welcome. Do you have any more questions?
Yes actually, who would have absolute advantage?
Well, Ireland would have absolute advantage in both.
Explore Our Articles and Examples
Try Our Other Websites!
Photos for Class
– Search for School-Safe, Creative Commons Photos (It Even Cites for You!
– Easily Make and Share Great-Looking Rubrics
– Create Custom Nursery Art