Trading with Comparative and Absolute Advantage Activity

Macmillan Employee
Macmillan Employee
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Trading with comparative and absolute advantage

(cooperative learning, experiment)

Students are separated into groups, representing different countries, and given worksheets with production information. One country has an absolute advantage in both goods. Groups choose resource allocations to maximize utility and then can trade with the other country.

    • For larger classes, can have multiple groups for each country (just have an equal number of groups for each country) and then pair up groups for trading.
    • There are many variations of this available (for example, see here, and here)