Key Concepts: Opportunity Costs, Specialization and Trade

Central Intelligence Agency - The World Fact Book
http://www.odci.gov/cia/publications/factbook/index.html

Select specific countries listed under the "Flags of the World" link and review their "Economy" information. Integrate global perspectives by selecting varied countries such as Japan, Australia, Unites States, Congo, India, and China.

• Select Caribbean countries such as Aruba and study their "Economy" information (e.g. available resources) on The World Fact Book page. Find and click on Aruba on the map at http://www.caribbean-on-line.com and review its map and guides information. Compare and contrast the type of information presented in the referenced websites (World Fact Book vs. Caribbean-on-line). Is there a relationship between available "resources" and "specialization" of economic activities?
• What factors influence the degree of economic specialization for the countries reviewed?
• Explain how opportunity costs and comparative advantages affect their specialization.