After you have returned the first test, you may start on lessons 10-15. At the end of the 20th lesson, you may request your final examination, which is also closed book. The first chapter orients the student to the entire text. It covers the international political system, the international economic system, the multinational enterprises, the nature of the international trade and the goals and instruments of foreign economic policy. This lesson focuses on Comparative Advantage and the gains from trade.
International trade takes place due to comparative advantage.
So understand the chapter thoroughly. This lesson is about chapter 3. It is a continuation of the theory of comparative advantage due to factor endowments. It also applies indifference curve analysis to show how nations can consume outside their production possibility curve. This lesson deals with chapter 4 and is a continuation of comparative advantage.