Analyze the simulation results and use the comparative advantage model to make a decision about specialization. Predict the consequences of one s decisions. The reading for this lesson explains why countries trade with each other. Even when countries can produce what they want on their own, they often choose to specialize. They import some things and export others.
People specialize for the same reasons that countries specialize.
That there are just two countries in the world, the United States and Canada. They produce only two goods, shoes and shirts. The resources of both countries can be used to produce either shoes or shirts. Both countries make both products, spending half their working hours on each good. The United States makes more shoes than shirts, and Canada makes more shirts than shoes.