Materials

• Class notes
• Explanation of comparative advantage
• Internet access

Instructional Activities

1. Review the content from the previous session.
   
   
2. Ask students to consider the issues that must be considered when the United States is trying the determine when to become involved in foreign countries.
   
   
3. Ask the students to define global economy.
   
   
4. Explain that in addition to foreign policy involvement, the United States is also involved in the global economy.
   
   
5. Instruct students to divide a paper into two columns. Label one column, “Advantages of global trade” and the other, “Disadvantages of global trade.”
   
   
6. Provide students with an explanation of comparative advantage.
   
   
7. Provide examples to illustrate the concept of comparative advantage.
   
   
8. Display the following notes on the board or overhead and discuss them with the students to promote understanding of the concept of comparative advantage.
   • International trade provides Virginia and the United States with goods and services for which they do not possess absolute or comparative advantage.
   • Virginia and the United States benefit when they produce goods and services for which they have a comparative advantage and trade for other items.
   
   
9. Direct students to develop a chart that illustrates the concept of comparative advantage. The chart should use actual products for examples. For advanced students, this could constitute a larger project: assign research concerning the actual cost of production of specific products so students can determine which countries have comparative advantage on selected products.