ECO202 Lecture Notes - Comparative Advantage, Absolute Advantage, Food Security
29 Nov 2022
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The united states has a comparative advantage over china on the production of specialized and capital-intensive labor. It also has a comparative advantage in the production of services, such as travel and tourism. First play the simulation games: comparative advantage (without trade, comparative advantage (with trade) When i started the game (without trade), i was a bit confused about my goal. In the first round, i didn"t reach my goal due to that fact. The second round was more successful because i understood my goal. This experience showed me how difficult these larger trade deals between countries can be. Countries trade goods just like the food trucks do in the simulation. I believe that the (without trade) game was better because it had only one food truck to buy from. Which gave the food truck all the revenue, but the demand for the burgers and fries would eventually become overwhelming for a solo food truck to accommodate without trade.
