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Gains from trade

Lesson Objectives

  1. Understand the terms of trade.
  2. Analyze how specialization and trade can increase consumption for both all trading partners.
  3. Understand the difference between absolute advantage and comparative advantage.
  4. Learn to identify those who benefit and those who become worse off with free trade.
  5. Analyze the impact of trade restrictions on jobs.

Textbook reading

  • Chapter 3

Non-textbook materials

Videos

Video: Trade Can Benefit Both Trading Partners
Video Questions, Answers & Updates
Video: Comparative and Absolute Advantage
Video Questions, Answers & Updates
Video: Free Trade and the Political Process
Video Questions, Answers & Updates

Study aids