Title: (Optional) Explain the economic concepts of balance of trade, absolute advantage, and comparative advantage.
Course: Opportunities in Global Trade (12056-I) > Section: Exploring the Realities and Fluctuations of the Global Economy

Explanation should include the definition of balance of trade (the difference between a country's exports and imports), an examination of the concepts of absolute and comparative advantage, and a commentary on how absolute and comparative advantage relate to balance of trade in the global marketplace.

Process/Skill Questions:

- What are the economic effects of imports exceeding exports and vice versa?
- Given two countries, compare their balance of trade. Do selected countries have a trade deficit or trade surplus? How is each country affected by its trade status?
- What is the effect of strong currency on a nation's balance of trade? What is the effect of a weak currency?
- Why is one country able to produce a good/service more efficiently than another?
- Given two countries, for which goods/services does each country have a comparative advantage? An absolute advantage? How is each country affected by its particular advantage?
- When does a nation have a favorable balance of trade?
- What is the difference between comparative advantage and absolute advantage?