Council for Economic Education
Econ Ed Link: Frontier Specialists
The level of output in an economy can be increased through specialization. Economic specialization occurs when people produce different goods and services than they consume. It requires people to exchange goods and services.
Council for Economic Education
Econedlink: Balance of Trade and Balance of Payments
This video teaches the concepts of Balance of Trade and Balance of Payments. The balance of trade is calculated by subtracting imports from exports. The balance of payments includes payments related to exports and imports of goods;...
Council for Economic Education
Econ Ed Link: Nafta: Are Jobs Being Sucked Out of the United States?
NAFTA, the North American Free Trade Agreement, went into effect on January 1, 1994. The Agreement phases out most tariffs between the United States, Canada, and Mexico. Tariffs, which are taxes on imports, increase the price of foreign...
Council for Economic Education
Econ Ed Link: Should Le Bron James Mow His Own Lawn?
This lesson will discuss absolute advantage, comparative advantage, specialization and trade with an example using professional basketball player LeBron James.
Council for Economic Education
Econ Ed Link: Specialization and the Decathlon
This lesson uses results from the 2008 Summer Olympic Games to explain that athletes specialize in sports and events for which they are most skilled for the same reasons that individuals and nations specialize in the production of goods...
Federal Reserve Bank
Federal Reserve Bank of Atlanta: Trade: Why Do Nations Trade?
Basics from key terminology to why we trade are featured alongside introductions to foundational concepts such as production possibilities frontiers, absolute and comparative advantage, trade barriers, and free trade versus protectionism.
Texas Education Agency
Texas Gateway: Chapter 9: Trade Balances and Flows of Financial Capital
By the end of this section, you will be able to do the following: Explain the connection between trade balances and flows of financial capital, Calculate comparative advantage, and Explain balanced trade in terms of investment and...
Khan Academy
Khan Academy: Ap Macroeconomics: Lesson: Comparative Advantage/gains From Trade
In this AP Macroeconomics lesson summary from Khan Academy reviews and reminds about the key terms, graphs, and calculations used in analyzing comparative advantage and the gains from trade. Key concepts include how to determine...
Khan Academy
Khan Academy: Comparative Advantage and Absolute Advantage
Practice what you have learned about comparative advantage and absolute advantage in this four-question exercise.
Khan Academy
Khan Academy: Comparative Advantage and the Gains From Trade
Practice what you have learned about calculating absolute advantage and comparative advantage, and how to use comparative advantage to determine who should specialize in the production of one good or the other.
Wikimedia
Wikipedia: Absolute Advantage
This site defines "absolute advantage" and gives simple examples.
Other
Iang's Library: David Ricardo: The Theory of Comparative Advantage
This page covers the theory of comparative advantage, biographical details and theories of the 19th century economist David Ricardo, and additional resources.
Auburn University
Auburn University: Glossary of Political Economy Terms: Specialization
Dr. Johnson defines the term "specialization" and reasons for its development in our economy.
Curated OER
A Ricardian Numerical Example
This site offers an in-depth analysis of "absolute advantage" and "comparative advantage", and includes supporting charts and graphs to support the examples that are given.
Curated OER
A Ricardian Numerical Example
This site offers an in-depth analysis of "absolute advantage" and "comparative advantage", and includes supporting charts and graphs to support the examples that are given.
Curated OER
The Motivation for International Trade
This article discusses how differing prices of various goods in two nations will motivate these nations to trade with each other until the prices of these goods become equal.
Curated OER
The Motivation for International Trade
This article discusses how differing prices of various goods in two nations will motivate these nations to trade with each other until the prices of these goods become equal.
Curated OER
The Motivation for International Trade
This article discusses how differing prices of various goods in two nations will motivate these nations to trade with each other until the prices of these goods become equal.
Curated OER
The Motivation for International Trade
This article discusses how differing prices of various goods in two nations will motivate these nations to trade with each other until the prices of these goods become equal.