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Do Now (3 min)

Why would a nation work with another nation in trade if one of the nations can clearly outproduce and outperform the other?

Answer Here:

Lesson Steps

Do Now (5 min)
Mini Lesson (10 min)
Teacher model (10 min)
Partner Work (15 min)
Lesson Summary (5 min)
Exit ticket

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Topic: Comparative Advantage

Unit: Specialization

Aim:	Why does it matter?
I can evaluate why a nation with the absolute advantage in producing two goods can nonetheless benefit from voluntary trade.	Students (and many others) often assume incorrectly that trade is a zero-sum game: For every winner there must be a loser. The beauty of trade, and one of the most important point to get across in economics, is that trade is a win-win situation. Both parties must stand to gain, or they would not engage in voluntary trade. Also this

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Mini-Lesson (10 min)- Setting up our scenario

China and Japan want to trade with the United States. The U.S. has agreed to trade with both countries, but both countries must work together to deliver on the exports. They will not get paid until both Units of Exports (Computers and Cars has arrived)

Their job is twofold:

First, they must produce one truckload of computers.
Second, they must produce three truckloads of cars.

Again the U.S. has announced that neither country is to be paid until the exports are delivered. The most important goal then for China and Japan is to produce the exports as quickly as possible.

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Mini-Lesson…continued

DIsplay for the students visual 1.1, then display the 4 options

Option 1. Considers dividing the work by having both nations do both tasks together. First, this option calls for Japan and China to both work on producing the computers; then they should both tackle the cars.	Option 2. China’s Plan: China argues that they should divide the tasks and work separately. China says they should produce the computers because China likes this job better and, Japan should produce all the cars by itself.
Option 3. Japan’s Plan: Japan argues that China should do all the production in this case. Japan suggests that this would be the most efficient option because China is so much faster and better at doing both jobs. Japan will just stay out of China’s way so they won't slow her down.	Option 4. Suggests each nation should specialize in what they do best. This option recommends that China should produce the three truckloads of cars because this is what China does best. Japan should then produce the one truckload of computers because it is what Japan does best.

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What Success looks like today.

Classwork, excluding assessments, is always graded each day out of 4 points!

4/4= Student participated and completed Activity 1 (teacher guided model) and Activity 2 (Partner work). Student Participated twice throughout class period.

3/4= Student completed Activity 1 (teacher guided model) and Activity 2 (Partner work).

2/4= Student participated and completed Activity 1 (teacher guided model) and did not do Activity two.

0/2= Little to no work done.

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Teacher Guided Activity (10 min)

Students next I will distribute Activity 1 to you all, then together we will answer these questions which will provide us with the skills and background needed to evaluate the four options which you will do as an activity with a partner.

NOTE: In this model, when Japan and China work together, they still work at the pace shown in the table. That is, they do not increase their individual productivity as a result of specialization.

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ACTIVITY 2 -Partner Work (15 min)

APPLYING COMPARATIVE ADVANTAGE: Present Students with Activity 2

Analyzing and evaluating the options

Now that you have worked with the data, it is time to use this information to evaluate the options and make a decision. Read each of the options given to you thoroughly. Then, answer the questions to determine the total amount of time it would take to complete the job of producing three truckloads of cars and one truckload of computers. Please work with a partner.

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Lesson Summary (5 min)

Students please summarize today's lesson while answering our aim “Why would a nation with the absolute advantage in producing two goods nonetheless benefit from voluntary trade. Please answer the question using 4-5 sentences.

For guidance please address at least 4/6 of the following concepts

· Absolute advantage

· Barriers to trade

· Comparative advantage

· Opportunity cost

· Specialization

· Voluntary trade

Please answer this on the back of your Classwork Worksheet. Make sure to have Names on these!