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Kenya and Norway Major Exports Comparative and Absolute Advantage Discussion

Kenya and Norway Major Exports Comparative and Absolute Advantage Discussion

Question Description

Watch the above videos. Once you have done this post a response to each of the bullets below.

  • What is the difference between comparative and absolute advantage?
  • Visit the following CIA Factbook website (Links to an external site.), select two countries of interest to you (other than U.S.), select the economy section, scroll down and locate at least five of the country’s major exports. Are these exports indicative of an absolute or comparative advantage?
  • Using the same CIA Factbook Website above, what are the major exports for the U.S.
  • Should we expect goods to be the same price all over the world? What factors might make a Big Mac more expensive in one country relative to another?
  • Visit the debt clock website at http://www.usdebtclock.org/ (Links to an external site.) and locate the on the U.S. Trade Deficit? What is the deficit indicated? In percentage terms approximately how much of this deficit is with China?
  • Visit the following Yahoo Currency Exchange site (Links to an external site.) and determine how much a $200 dress in N.Y. would cost a British visitor in Pounds?
  • What are the benefits of free trade? Protectionism (e.g. tariffs & quotas)? Which position do you lean toward? Explain your perspective and after you post your narrative, reply to at least two other students comments. Explain why you agree, or better yet, find others that take a different position and explain why you disagree.


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