The World Fact Book

Select specific countries listed under the "Country Listing" link and review their "Economy" information. Integrate global perspectives by selecting varied countries such as Japan, Australia, Unites States, Congo, India, and China.

• Select Caribbean countries such as Aruba and study their "Economy" information (e.g. available resources) on The World Fact Book page. Find and click on Aruba on the map at caribbean-on-line.com and review its map and guides information. Compare and contrast the type of information presented in the referenced websites (World Fact Book vs. Caribbean-on-line). Is there a relationship between available resources and specialisation of economic activities?
• What factors influence the degree of economic specialisation for the countries reviewed?
• Explain how opportunity costs and comparative advantages affect their specialisation.
  

International Trade Commission

Select one of the listed U.S. trading partners and review their direction of trade in terms of exports and imports with US.

• Identify the current top three trading partners (in terms of trade turnover).
• Survey the "Merchandise Trade Balance" information for the first 20 trading partners. Identify which partner(s) have a positive trade balance with the U.S. (Hint: consider U.S. trade balance deficit.) Explain how international trade flow of selected nations is shaped by their comparative advantage.
  

Globalisation

Read the introductory section of the document entitled "Globalisation Takes Hold" (by Peter Schirmer and Melissa A. Taylor).
a. It is suggested in this document that developed economies may experience larger gains from trade while trading with developing countries than they receive when trading with other developed economies. Why might this be true?
b. How does the existence of the internet and the World Wide Web facilitate international trade?

The Case for Open Trade

Read the World Trade Organisation's document entitled: "Basics: The Case for Open Trade."
a. In this document, it is argued that economic development will affect a country's competitiveness in particular international markets. Why might this occur? Be specific.
b. Explain why Paul Samuelson argued that the principle of "comparative advantage" is nontrivial.