Trade Lesson 3 Activities
Trade Lesson 3 Introduction

Time: 5 minutes
Skills: n/a
Objective 3
Related Resources:
-  Global Trade Lesson 3.pptx 
- Krugman, P.R., and Obstfeld, M. (2008). Resources, Comparative Advantage, And Income Distribution. In International Economics: Theory & Policy, 8th Edition, Pearson-Addison-Wesley. (pp 54-87). Boston: Pearson.

What factors are missing from the comparative advantage model?

If two countries have equally productive labor, what else might influence what a country produces?

Trade Lesson 3 PowerPoint Presentation

Time: 60 minutes
Skills: Holistic Thinking
Objective 3
Related Resources:
- Global Trade Lesson 3.pptx 
- Krugman, P.R., and Obstfeld, M. (2008). Resources, Comparative Advantage, And Income Distribution. In International Economics: Theory & Policy, 8th Edition, Pearson-Addison-Wesley. (pp 54-87). Boston: Pearson.

Present the PowerPoint presentation. Questions are embedded in the slides. Use the glossary to define any unknown terms. 

Read the relevant chapters in the recommended texts and look for online data for the latest figures of global trade.

Trade Lesson 3 Heckscher-Ohlin Model Activity

Time: 15 minutes
Skills: n/a
Objective 3
Related Resources:
Global Trade Lesson 3.pptx 
- Krugman, P.R., and Obstfeld, M. (2008). Resources, Comparative Advantage, And Income Distribution. In International Economics: Theory & Policy, 8th Edition, Pearson-Addison-Wesley. (pp 54-87). Boston: Pearson.

Students come up with at least three examples where the HO model can be applied.

Trade Lesson 3 Review

Time: 5 minutes
Skills: Holistic Thinking 
Objective 3
Related Resources: n/a

Ask the students to describe in their own words the difference between the Heckscher-Ohlin Model and the Ricadian Theory of Comparative Advantage?

What are the weaknesses of the Heckscher-Ohlin Model?