05.04 Trade Analysis—Template

Name D’onna Mcnab Instructor : Mrs . Dailey

1.Use the chart in the lesson to identify one developing country and one developed country to compare to the United States. Use the tables below to record data for each country. Then respond to the analysis questions.

Table 1: Identify one developing and one developed country along with the United States. Complete a

| Corn | Citrus | Number of additional worker hours to produce one unit of citrus instead of one unit of corn | United States | 2 | 4 | 2 | Developing Country | 6 | 10 | 4 | Developed Country | 8 | 10 | 2 |

Table 2: Identify one developing country and one developed country along with the United States. Complete a trade analysis for industrial products. | Apparel | Computer Software | Number of additional worker hours to produce one unit of citrus instead of one unit of corn |

United States | 2 | 4 | 2 | Developing Country | 4 | 12 | 8 | Developed Country | 6 | 8 | 2 |

2. Analysis—using the data you collected, answer each of the following analysis questions in well-written paragraphs in your own words. A. Identify an example of absolute advantage relative to the United States from your data tables. Be sure to identify which country has absolute advantage (U.S. or other), the product, and data to support your claim. Tip: When considering absolute and comparative advantage, worker hours to produce one unit is a reflection of productivity.
- The chart in the lesson shows me that it takes a shorter time for the production of corn, citrus, apparel and software computers in the United States than in other countries. Absolute Advantage is when a country wants less physical resources than others to produce a product. The United States has absolute advantage.

B. Identify an example of comparative