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Inbox
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Production
Data
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Trade
Tools
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Trade
Cheat Sheet
๐Ÿงฎ
Calculator
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Recycle Bin
โœˆ๏ธ Welcome
Trade isn't about who's better. It's about who gives up less. โ€” Rina
๐Ÿ—“๏ธ Reminder
Passport expires June. FINALLY going to Kyoto.
๐Ÿ“ง Inbox โ€” GD Mail
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โ— Unread ๐Ÿšฉ Flagged ๐ŸŒ Global Commerce
๐Ÿ“Š Production Data
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๐ŸŒพ
Scenario
TRADE
๐Ÿ“ OUTPUT-based: "How much can each produce in 1 day?"
๐ŸŒ Trade Tools โ€” Analysis Workflow
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Progress
1

๐Ÿ’ช Who has the Absolute Advantage?

Who can produce more of the highlighted good?

2

๐Ÿงฎ Calculate Opportunity Costs

Fill in both blanks. Express OC of Good A in terms of Good B.

3

๐ŸŽฏ Who has the Comparative Advantage?

Whoever gives up less has the comparative advantage.

4

๐Ÿค Accept the Trade Offer?

GD must pick the deal that beats producing alone.

๐Ÿ“Š Quarterly Results
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๐Ÿ’ฐ
Revenue Impact
๐Ÿงฎ Calc.exe
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0
๐Ÿ“‹ Trade Cheat Sheet
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โš ๏ธ Opening the cheat sheet costs $25,000 โ€” once per round!
๐Ÿ’ช Absolute Advantage
The ability to produce more of a good (output mode) or use fewer resources per unit (input mode). Just a raw comparison of numbers.
๐Ÿงฎ Opportunity Cost (OC)
Output mode: OC of 1 A = (B รท A). Input mode: OC of 1 A = (hours A รท hours B).
"What do I give up to make one more A?"
๐ŸŽฏ Comparative Advantage
The producer with the LOWER opportunity cost has CA in that good. CA โ‰  AA โ€” a country can have AA in both goods but only CA in one.
๐Ÿค Terms of Trade
A rate is mutually beneficial if it falls between the two producers' OCs. Outside that range, one side loses.
๐Ÿ—‘๏ธ Recycle Bin
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๐Ÿ—‚๏ธ

3 items ยท recently deleted

Travel expenses from last year's "fact-finding mission" to Bali. Accounting flagged everything.

  • ๐Ÿ“„ Bali_trip_justification_memo.docx
  • ๐Ÿ“„ Is_this_tariff_legal.pdf
  • ๐ŸŽฎ FreeCell.exe
๐Ÿ’ฐ $2,500,000

Global Dynamics Corp.

International Trade Workstation

๐Ÿ“ง
Inbox
Memos from execs
๐Ÿ“Š
Production Data
Output & input figures
๐ŸŒ
Trade Tools
4-step workflow
๐Ÿ“‹
Trade Cheat Sheet
Costs $25k/round
๐Ÿงฎ
Calculator
Crunch numbers
๐ŸŒโœˆ๏ธ
Trade Routes
AP Micro/Macro ยท Comparative Advantage
Welcome to the International Trade Division at Global Dynamics Corp. Execs need your read on 5 cross-border production deals. Find who should make what, and whether the proposed trade is worth it. ๐ŸŒ

๐Ÿงญ How to play

  1. Read each email and check the production data
  2. Identify who has absolute advantage
  3. Calculate both parties' opportunity costs
  4. Identify who has comparative advantage
  5. Evaluate if the trade terms benefit GD
Final Trade Report
Company Revenue