Sep 12 2011

If Iceland can get rich, anyone can!

CIA – The World Factbook – Iceland

How did a barren rock in the middle of the North Atlantic Ocean become one of the richest countries in the world, where the average citizen earns $40,000 per year?

Iceland’s prosperity is a perfect example of how a country that participates in international trade based on the principal of comparative advantage can produce the goods for which it has a relatively low opportunity cost, export them to the rest of the world, and become rich. Listen to the podcast below, then complete the activity that follows.

Activity:

  • Go to the CIA World Factbook online.
  • Look up your home country from the drop down menu.
  • Click on the “Economy” section and read the introduction to your nation’s economy.
  • Look through the economy section and find information on your nation’s exports, then answer the questions that follow.
Questions: 
  1. What is the value of your home country’s exports (in dollars)?
  2. What are the main exports from your country to the rest of the world?
  3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).
  4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.
  5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?
  6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?
  7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

About the author:  Jason Welker teaches International Baccalaureate and Advanced Placement Economics at Zurich International School in Switzerland. In addition to publishing various online resources for economics students and teachers, Jason developed the online version of the Economics course for the IB and is has authored two Economics textbooks: Pearson Baccalaureate's Economics for the IB Diploma and REA's AP Macroeconomics Crash Course. Jason is a native of the Pacific Northwest of the United States, and is a passionate adventurer, who considers himself a skier / mountain biker who teaches Economics in his free time. He and his wife keep a ski chalet in the mountains of Northern Idaho, which now that they live in the Swiss Alps gets far too little use. Read more posts by this author

45 responses so far

45 Responses to “If Iceland can get rich, anyone can!”

  1. Michela H.on 12 Sep 2011 at 9:58 am

    Questions:

    1. What is the value of your home country’s exports (in dollars)?

    Exports:

    $201.9 billion (2010 est.)

    2. What are the main exports from your country to the rest of the world?

    transport equipment, iron ore, soybeans, footwear, coffee, autos

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    GDP (official exchange rate):

    $2.09 trillion (2010 est.)

    10% of Brazil's output is exported. This means that 90% of what Brazil produces is consumed domestically

    Exports:

    $201.9 billion (2010 est.)

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Brazil exports : transport equipment, iron ore, soybeans, footwear, coffee, autos

    These goods are mainly land and labor intensive . Brazil exports these goods to the rest of the world because the opportunity cost for them to produce these goods are very low , which means that it is cheaper for another nation to buy from Brazil than It would be to produce it domestically . Another problem that other nations could have is bad soil which means they would have a hard time growing goods while Brazil in contrast has a large rich amount of soil fil;ed with minerals and fertilizable soil, not only that but the weather in the country also help produce agricultural goods . Also labor in Brazil is relatively cheap which means that factory owners or landlords can have more people working for less money.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    Imports:

    $181.7 billion (2010 est.)

    Brazil only imports 9% of goods from other countries.

    GDP (official exchange rate):

    $2.09 trillion (2010 est.)

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    Brazil exports more goods than it imports which is good for the circular flow income because it means Brazil does not spend that much buying resources from other countries. Automatically this makes the country richer in the long run because brazil is earning more money ( from exports) than it is spending on imports.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    Brazil has a comparative advantage in the goods such as : soybeans and coffee because Brazil has vast amount of land that contains rich soil also the weather helps agriculture. This means Brazil has a comparative advantage because the opportunity cost to produce these goods is very low in comparison to the nations that import from brazil . In imports the comparative advantage means that the opportunity cost for Brazil to produce the goods that it is importing is very high which means it would cost more for Brazil to produce these goods than it would be to import it.

  2. Vivi G.on 12 Sep 2011 at 8:26 pm

    1.What is the value of your home country’s exports (in dollars)?

    $1.113 billion (2010 est.)

    2.What are the main exports from your country to the rest of the world?

    pig iron, unwrought copper, nonferrous metals, diamonds, mineral products, foodstuffs, energy

    3.Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    GDP= $9.389 billion (2010 est.)

    Exports = $1.113 billion (2010 est.)

    = 11.85

    4.What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Armenia exports mainly land-intensive goods such as unwrought copper, nonferrous metals, and diamonds. This is because there is an abundance of natural resources which gives Armenia the opportunity of comparative advantage. Since it is a developing country it does not have many high skill labor goods.

    5.What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    Armenia imports natural gas, petroleum, tobacco products, foodstuffs, diamonds to a total amount of imports of $3.255 billion (2010 est.)

    6.What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    Imports have a greater value in Armenia. There is a leakage from the circular flow since there is a higher imports value, meaning that the money earned by Armenian households is being spent on other country's goods at a higher value than the money injected into the circular flow from exports.

    7.Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    Armenia has a comparative advantage in land-intensive resources such as copper, metals, diamonds, and other natural land resources. This is because they have these materials in abundance causing a low opportunity cost therefore making up almost 100% of their exports.

  3. tayloron 14 Sep 2011 at 5:25 pm

    Questions for the United States of America: 

    1. What is the value of your home country’s exports (in dollars)?

    Exports:

    $1.289 trillion (2010 est.)

    2. What are the main exports from your country to the rest of the world?

    transistors, aircraft, motor vehicle parts, computers, telecommunications equipment, agricultural products, and medicines.

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    8.8 %

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Aircrafts, computers, and motor vehicle parts are all capitol-intensive. These products are also high skilled labor-intensive because there needs to be skilled workers to produce these goods. Agricultural products are land-intensive. Some countries don't have the land resources that America does, so we export these products to them.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    automobiles, toys, clothes, computers, office machines, medicines

    Imports:

    $1.936 trillion (2010 est.)

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of imports is greater than the value of exports. This means that we are spending more to import goods but aren't exporting enough so we don't have the money to pay for it all. The circular flow gets smaller because money is leaking from it.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    America is land-intensive and should export many agricultural products. Also, most of America's exports are capitol-intensive, which means they are very resourceful when it comes to capitol. They should produce goods and products that require high capitol and export those.

  4. Benion 14 Sep 2011 at 6:50 pm

    I chose Israel as my hometown for this activity!

    1. What is the value of your home country’s exports (in dollars)?

    $55.84 billion (2010 est.)

    2. What are the main exports from your country to the rest of the world?

    machinery and equipment, software, cut diamonds, agricultural products, chemicals, textiles and apparel

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    55.84/213.1=0.262 0.262*100=26.2

    26.2% of the GDP is represented by exports.

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    The machinery and equipment, software, cut diamonds, and chemicals that Israel produce make it seem like the exports are very capital-intensive because they are technological. The agricultural products that Israel exports make it seem that Israel's exports are more land- and labor-intensive. And the Textiles and Apparel that Israel exports make it seem that Israel's exports are more labor-intensive.

    Israel's exports seem like they have different influences on the rest of the world. While the Labor- and Agricultural-Exports seem to have a relative smaller and simpler influence on the world – simple consumption of those goods, the Capital-Intensive goods seem to have a technological influence on the rest of the world and therefore influence the production and development of other goods produced in other countries.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    Israel imports: raw materials, military equipment, investment goods, rough diamonds, fuels, grain, consumer goods

    Israel imported about 57.93 billion dollars worth of goods, products, materials, and services, in 2010.

    57.93/213.1=0.2718 0.2718*100=27.18

    27.18% of the GDP is made up of imports.

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of imports is about 1 percent greater than the value of exports in Israel. This means that the "circular flow" of Israel is possibly unideal and unbalanced for Israel, because Israel spends more money on imports than it gains from exports.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    Israel seems to mainly export cut diamonds, agricultural products, and high technological equipment. Besides that Israel seems to import also lots of rough diamonds. Israel should maybe focus mostly on processing diamonds and producing and exporting technological equipment and agricultural products. One of Israel's biggest strengths in the last few years (and also one of the reasons why Israel's economy grew so strongly in such a short time) is the Technology Market of Israel. Technological entrepreneurship and research has been strongly supported by the government of Israel and should also be supported by the government in the future – this way the Technological Market can grow even stronger and bigger and be Israel's Comparative Advantage and main focus of production and export.

  5. D Nagon 15 Sep 2011 at 12:36 pm

    Country: Germany

    1. What is the value of your home country’s exports (in dollars)?

    – $ 1.303 trillion

    2. What are the main exports from your country to the rest of the world?

    – Machinery, vehicles, chemicals, metals and manufactures, foodstuff, textiles

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    – 1.303/3.316=0.3929 0.3929*100=39.29

    – GDP %39.29

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    – Machinery, vehicles, chemicals, metals and manufactures, foodstuff, textiles are Labor intensive. They do this, because labor has to be high skill to produce these products

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    – Machinery, vehicles, chemicals, foodstuffs, textiles, metals

    – Imports $1.099

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    – The value of exports are bigger. This means that the country is rich.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    – It definitely has a comparatives advantage in Machinery, vehicles, chemicals, foodstuffs, textiles, metals, because it is number 3 exporter in the world of this.

    – Germany also imports a lot of natural gas, where we are number 2 consumer in the world. This gives us a comparative disadvantage in the production of natural gas.

  6. Lukason 15 Sep 2011 at 1:29 pm

    Finland, since I'm half-Finnish.

    What is the value of your home country’s exports (in dollars)?

    $186 billion (2010 est.)

    What are the main exports from your country to the rest of the world?

    electrical and optical equipment, machinery, transport equipment, paper and pulp, chemicals, basic metals; timber

    Basically, cell phones and timber.

    Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    Exports value: $69.4 billion

    Exports as % of GDP: 37%

    What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Finland is capital-rich. It has very high-tech industries. I would say it is land-rich, but apart from timber it has few natural resources.

    What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    Imports value: $64.96 billion

    Imports as % of GDP: 35%

    Imports include foodstuffs, petroleum and petroleum products, chemicals, transport equipment, iron and steel, machinery, textile yarn and fabrics, and grains.

    What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    Imports and exports are close, but Finland has more exports. Its "circular flow" grows larger with time because of this- it has a trade surplus and is getting richer.

    Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    Finland mostly imports resources and exports capital-intensive products. It has a comparative advantage in cell phones (Nokia) compared to most other nations, for example. Land or labor-intensive products are likely to be imported from elsewhere, but Finland has plenty of capital.

  7. Raphaelon 15 Sep 2011 at 1:33 pm

    Questions: 

    1. What is the value of your home country’s exports (in dollars)?

    The value of export is $232.6 billion (2010 est.)

    2. What are the main exports from your country to the rest of the world?

    The main exports of my country are machinery, chemicals, metals, watches, agricultural products

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    GDP: $523.8 billion (2010 est.)

    $232.6 billion (2010 est.)

    232.6/523.8=0.44*100=44%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    It has mostly capital-intensive goods, because it has a lot of minerals and high tech machinery. Switzerland does not have that much land, and it does not have labor-intensive.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    We import machinery, chemicals, vehicles, metals; agricultural products, textiles.

    $226.3 billion (2010 est.)

    226.3/523.8*100=43%

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of export, but it is nearly the same. It spends its money on its exports and on its imports.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    Its all capital-intensive production and high skill work. For example watches or chemicals.

  8. Constantineon 15 Sep 2011 at 1:36 pm

    1. $20.96 Billion

    2. Food and beverages, manufactured goods, petroleum products, chemicals, textiles

    3. 6.74%

    4. Land intensive , labor intensive , labor intensive land intensive, land intensive

    My country exports because we are in a lot of debt and need to pay back other countries. Greece has more

    Food and beverages-

    Manufactured goods-

    Petroleum products-

    Chemicals-

    Textiles-

    5. Import: machinery, transport equipment, fuels, chemicals

    305.6/46.6=6.5579

    46.6/305.6=0.1525

    0.1525*100=15.25%

  9. Nathan Ron 19 Sep 2011 at 11:09 am

    Belgian Trade

    1. What is the value of your home country’s exports (in dollars)?

    $284.4 billion

    2. What are the main exports from your country to the rest of the world?

    Machinery and equipment, chemicals, finished diamonds, metals and metal products, foodstuffs

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    61%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Finished manufactured goods so secondary goods. These goods are usually capital intensive and skilled labor intensive. This probably the main export because of poor natural resources but a high knowledge base and a good geographical location that promotes trade of manufactured goods and also raw materials.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    Raw materials, machinery and equipment, chemicals, raw diamonds, pharmaceuticals, foodstuffs, transportation equipment, oil products. 285.1 billion 61.2%

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of imports is greater, this menas there are more leakages in the Belgian economy than inputs

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    I think my country has a comparative advantage in secondary or manufacture goods. I think this is because Belgium has a well developed transportation network as well as a developed knowledge and skill base for manufactured goods. Also Belgium has a central geographical location which makes it an efficient trade platform.

  10. Debbieon 19 Sep 2011 at 3:26 pm

    Questions: 

    1. What is the value of your home country’s exports (in dollars)?

    $160.4 billion (2010 est.)

    2. What are the main exports from your country to the rest of the world?

    Oil – 248,500 bbl/day (2008 est.)

    Commodities – machinery 35%, motor vehicles, paper products, pulp and wood, iron and steel products, chemicals

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    45%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    machinery 35%, motor vehicles, paper products, pulp and wood, iron and steel products, chemicals

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    Imports: $149.1 billion (2010 est.)

    42%

    machinery, petroleum and petroleum products, chemicals, motor vehicles, iron and steel; foodstuffs, clothing

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    Exports are greater, which makes sense as if there are more exports than imports the country is earning on exports.

  11. Carl Son 19 Sep 2011 at 3:37 pm

    Namibia (is not my country but I thought would be interesting to do this activity with)

    1. What is the value of your home country’s exports (in dollars)? 4.042 billions

    2. What are the main exports from your country to the rest of the world? Copper, uranium, diamonds, semi-precious gems, zinc, gold and other minerals, cattle, manufactured fish, oysters and caracal skins

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100). 4.042/11.87=0.3405×100= 34.05%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world. Land-intensive and labour

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports? Foodstuffs, machines, petrol/fuel, chemicals

    N/A/4.042billion= N/A

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income? I do not know because the value of imports is not given

    Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell? I think that Namibia had an advantage in terms of having so much fish and having so many people coming to Namibia to fish but the problem now is that they have not controlled the countries seal population and then it is also being over-fished. This leads to the decrease in fish in the area meaning that there are problems for the country. I think that Namibia does have a comparative advantage in having so many minerals to be mined but there are not many other industries so there is a high level of unemployment.

  12. Tim B.on 19 Sep 2011 at 3:40 pm

    Country – Germany

    1. What is the value of your home country’s exports (in dollars)?

    a. $1.303 trillion

    2. What are the main exports from your country to the rest of the world?

    a. Chemicals, vehicles, metal and manufactures, textiles, nutrition's, machinery

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    a. 1.303/3.32 = 0.3925 0.3925*100=39.25

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    a. Chemicals, vehicles metal and manufactures, textiles, nutrition's and machinery are exported and very labor as well as capital intensive. A high skilled workforce is needed to produce these kind of goods. However, it is very capital intensive to produce metal and manufactures.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    a. Vehicles, nutrition, chemicals, textiles, machinery, metals.

    b. Imports: $1.099

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    a. For a country like Germany the value of export is from more importance than the value of imports, since the country could earn money over the long run when the exports of the country exceed the imports. Additionally this would allow the country to spend the additional income earned on the export on goods which are limited in the country and must be imported. As the amount of exports exceed the amount of imports the circular flow inside the country will be enhanced since this raises the incentive for the nation to further produce as well as trade with goods, since profits are earned.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    a. Large amount of exports in chemicals, vehicles, metal and manufactures, textiles, nutrition's and machinery definitely gives the country a comparative advantage in comparison to other countries. Especially metal and textiles are very important export goods and give the country a comparative advantage. The need of importing goods which are limited within the country would give the country a comparative disadvantage.

  13. Penelopeon 19 Sep 2011 at 3:47 pm

    1. What is the value of your home country’s exports (in dollars)?

    $1.376 billion in 2010

    2. What are the main exports from your country to the rest of the world?

    Alumina, bauxite, sugar, run, coffee, yams, beverages, chemicals, wearing apparel and mineral fuels

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    10.051%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Jamaica mainly exports low-skilled land and labor intensive goods. It probably exports these types of goods because of a relatively low literacy rate and because it has a lot of natural resources. Also because the labor force is make up of 64% services, 19% industry and 17% agriculture.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    It imports food and other consumer goods, industrial supplies, fuel, parts and accessories of capital goods, machinery and transport equipment and construction materials. The dollar value of imports is $4.581 billion and 33.46% of Jamaica’s GDP is made up of imports.

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of imports is greater, which means that more money is flowing out of the economy than in.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    Jamaica is land and labor intensive. The majority of the population is employed in the agricultural labor force. Therefore, they have an advantage in the types of goods and services that need low skill labor.

  14. Maphridaon 19 Sep 2011 at 6:27 pm

    1. What is the value of your home country’s exports (in dollars)?

    – $2.54 billion (as recorded in 2010).

    2. What are the main exports from your country to the rest of the world?

    – Platinum, Cotton, Tobacco, Gold, Ferroalloys, Textiles/Clothing.

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    – ($2.54 billion/$7.474 billion)*100 = 33.98%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    – Zimbabwe exports labor intensive goods. Agriculture and mining are both very land intensive commodities. But because the labor is low skilled, Zimbabwe is only able to export primary goods such as these.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    – Zimbabwe imports machinery and transport equipment, other manufactures, chemicals, fuels, food products. The dollar value of imports is $4.043 billion (as recorded in 2010), which makes up 62.82% of the nations GDP.

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    – The value of imports is greater than that of exports, meaning that Zimbabwe's net export value is lower than it would be with a higher export value. Zimbabwe is spending more money than it is making.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    – Zimbabwe is disadvantaged in that it does not produce any capital goods such as technology, due to the lack of human capital. But they have a comparative advantage because they have the adequate resources (land and labor) needed to produce what they do, and this is what generates their economy.

  15. Susanneon 19 Sep 2011 at 8:48 pm

    1. What is the value of your home country’s exports (in dollars)?

    The value of UK exports is $410.3 billion (2010 est.).

    2. What are the main exports from your country to the rest of the world?

    The main exports are manufactured goods, fuels, chemicals; food, beverages and tobacco.

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    410.3 billion/2173 billion x 100=18.9%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    The UK has mainly labour and capital intensive goods.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    The UK imports manufactured goods, machinery, fuels and foodstuffs and the value of total imports is equal to $561.6 billion (2010 est.), which makes ($561.6 billion / 2173 x 100)= 25.8% of the UK GDP.

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The exports exceed the import, which indicates that the value of exports sold overseas will be injected into the circular flow, whilst spending by UK consumers and businesses on imported products represent a leakage from the flow.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    The UK’s comparative advantage now lies in oil, chemicals and pharmaceuticals as the opportunity cost of producing those goods/services in the UK is lower than in another country.

  16. Chris B.on 19 Sep 2011 at 8:52 pm

    Germany

    1. What is the value of your home country’s exports (in dollars)?

    $1.303 trillion

    2. What are the main exports from your country to the rest of the world?

    Machinery, vehicles, chemicals, metals and manufactures, foodstuffs, textiles

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    ($1.303 trillion/ $3.316 trillion)*100= 39.3%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    • Machinery, vehicles, chemicals, metals and manufactures, foodstuff, textiles are labor and capital intensive.

    • Germany has fairly high skilled workers which matches with the goods that are exported. In addition, most of the exports are capital intensive as specialized equipment is required.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    • Machinery, vehicles, chemicals, foodstuffs, textiles, metals

    • $1.099 trillion

    • ($1.099 trillion/ $3.316 trillion)*100=33.1%

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of exports is greater than the value of imports which means that money is flowing into the German economy.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    Germany has a comparative advantage in the manufacturing of specialized goods. This is because Germany has a skilled labor force and the knowledge for the production of the specialized goods. In addition, German has a sophisticated transportation network which allows for an efficient distribution of the goods produced. However, Germany has to import most of its resources for manufacturing due to the scarcity of these in the country. This gives Germany a comparative disadvantage compared to other nations in this aspect.

  17. Matthew Burnhamon 19 Sep 2011 at 9:25 pm

    1. What is the value of your home country’s exports (in dollars)?

    – $410.3 billion (2010 est.)

    2. What are the main exports from your country to the rest of the world?

    – manufactured goods, fuels, chemicals; food, beverages, tobacco

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    4103000000 / 2247000000000 = 0.0018 x 100 = 0.18

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    – banking, insurance and business services

    – manufactured goods, fuels, chemicals; food, beverages, tobacco

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    – manufactured goods, machinery, fuels; foodstuffs

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    – $410.3 billion (2010 est.)Exports vs. $561.6 billion (2010 est.) imports. The amount imported is greater than the amount exported . This means that there is more income from British consumers being spent goods and services than the income being made from local goods and services being bought by other countries.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    – The United Kingdom has particular skills that it can "export" to other countries that need them such as business services, which gives it a comparative advantage in that sector, but for physical goods it imports almost the same as it exports with the exception of tobacco and beverages which are made within the country.

  18. Larissaon 20 Sep 2011 at 11:38 am

    Country – Netherlands

    1. What is the value of your home country’s exports (in dollars)?

    $485.9 billion (2010 est.)

    2. What are the main exports from your country to the rest of the world?

    machinery and equipment, chemicals, fuels; foodstuffs

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    $485.9/$676.9 x 100 = 72.0 %

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    The Netherlands exports machinery and equipment, chemicals, fuels; foodstuffs. Because it exports fuels, this is very land-intensive. Also, they are labor and capital intensive due to the export in machinery and equipment.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    machinery and transport equipment, chemicals, fuels, foodstuffs, clothing

    $429 billion (2010 est.)

    $429/$676.9 x 100 = 63.38%

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of exports in my country is greater. This means that the Netherlands is stronger in selling its outputs. Therefore, the Netherlands’ income is more based on selling our own products than buying others’. As a result, this would allow the country to spend the income earned by export on goods which are limited in the country and must be imported.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    The products that are being exported are chemicals, machinery and equipment and fuels. Although we export those, we need to import those as well. This means that we do not have the machinery and equipment and fuels that we need. The need of importing goods which are limited within the country gives the Netherlands a comparative disadvantage.

  19. Markelon 20 Sep 2011 at 3:32 pm

    Mexico

    1. What is the value of your home country’s exports (in dollars)?

    1. $1.567 trillion

    2. What are the main exports from your country to the rest of the world?

    1. Manufactured goods, oil and oil products, silver, fruits, vegetables, coffee, cotton

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    1. 19.05%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    1. Mexico exports manufactured goods, oil and oil products, silver, fruits, vegetables, coffee and cotton. These goods are mainly land and labor intensive. Mexico exports these goods because the opportunity cost for them to produce such goods is relatively low, meaning that it is cheaper for another nation to buy the goods from Mexico than it would be to produce the goods domestically.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    1. Mexico imports metalworking machines, steel mill products, agricultural machinery, electrical equipment, car parts for assembly, repair parts for motor vehicles, aircraft, and aircraft parts. The dollar value of Mexico's country imports is $306 billion. The percentage of Mexico's GDP made up of imports is 19.53%

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    1. The value of imports is greater than the value of exports in Mexico. The circular flow of income is affected negatively because Mexico spends more money on bringing in resources from other countries which act as a leakage from the circular flow.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    1. Since Mexico is land and labor intensive, it means that a larger portion of the population is employed in the agricultural or mineral labor force. This is a form of specialization as Mexico is able to produce certain goods for a lower price. Mexicans therefore have an advantage in the types of goods and services that require lower skilled labor.

  20. Saint Jon 20 Sep 2011 at 4:06 pm

    1. $485.9 billion

    2. Food processing, chemicals, and oil refinery.

    3. 485.9/783.3 billion* 100% = 62%

    4. Land and capital intensive,

    5. Total of $429 billion imports in 2010, mainly financial services. Percentage of imports is 429/783.3 billion * 100% = 54.7%

    6. The exports is greater, this means there is an injection into the circular flow of income.

    7. The main exports probably have a comparative advantage, for example food processing. In addition, agriculture seems to be a comparative advantage, as it is a large export but only 2% of the population is employed in this sector(it is highly mechanized).

  21. Thomason 20 Sep 2011 at 4:40 pm

    Germany

    1. What is the value of your home country’s exports (in dollars)?

    The value of Germany's exports is $1.303 trillion.

    2. What are the main exports from your country to the rest of the world?

    They are machinery, vehicles, chemicals, metals, manufactures, foodstuffs and textiles.

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    (1.303/3.32) * 100 = (0.3925*100) = 39.25 => 39.25 %

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Machinery, vehicles, chemicals, metals, manufactures, foodstuff, textiles are both labor and capital intensive. Germany has a high skilled workforce, which is required to produce these kinds of goods and furthermore has expensive and specialized equipment, which is needed for capital intensive goods.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    Germany imports machinery, vehicles, chemicals, foodstuffs, textiles and metals. The dollar value of Germany's imports is $1.099 trillion.

    (1.099 / $3.316)*100=33.14 => 33.14%

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of exports in Germany is greater than the value of imports. Therefore more money is flowing into Germany's economy.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    In the manufacturing of specialized goods, Germany has a comparative advantage due to its highly skilled labor force and knowledge for production of goods. In addition Germany has a very advanced infrastructure, which allows for a very efficient distribution of goods. But Germany has a comparative disadvantage too, as the nation has to import most of its resources for their production of goods.

  22. Beatriceon 20 Sep 2011 at 4:49 pm

    Germany

    1. $1.303 trillion

    2. Machinery, vehicles, chemicals, metals, textiles

    3. 39.29 %

    4. Machinery, chemicals, metal and textiles are labor intensive and capital intensive. Germany producers high skill labor intensive goods.

    5. • Machinery, vehicles, chemicals, foodstuffs, textiles, metals

    • Value of imports= $1.099 trillion

    • 33.12%

    6. The value of exports is greater, thus Germany is experiencing trade surplus in the circular flow.

    7. Germany has a comparative advantage in machinery, vehicles as it is specialized in the production of these goods. Germany has the technology and the skilled work force to produce these goods; however Germany does have a comparative disadvantage as is needs to import the resources needed for the production.

  23. Emmaon 20 Sep 2011 at 5:49 pm

    United Kingdom

    1. What is the value of your home country’s exports (in dollars)?

    $410.3 billion

    2. What are the main exports from your country to the rest of the world?

    Manufactured goods, food, chemicals, fuels, beverages, tobacco

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    18.3%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Britain's exported goods are mostly labor and capital-intensive.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    Manufactured goods, machinery, foodstuff, fuel. The total imports are worth $561.6 billion which is 25.0% of the nation's GDP.

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of imports is higher. This means there is leakage in the circular flow because there is higher consumption of foreign produced goods.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    The United Kingdom has a comparative advantage in chemicals and manufactured goods because of a strong skilled labor force and modern technology. However the UK is not rich in resources such a oil and therefore must import it which is a comparative disadvantage.

  24. Alexandre Kon 20 Sep 2011 at 6:04 pm

    France

    1. What is the value of your home country’s exports (in dollars)?

    Value of exports: $517.3 billion in 2010

    2. What are the main exports from your country to the rest of the world?

    The main exports are:

    • Machinery and transportation equipment

    • Aircraft

    • Plastics, chemicals and pharmaceutical products

    • Iron and steel

    • Beverages

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    Percentage of GDP made of exports: ($517.3 billion/$2.583 trillion)*100=20.0%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    France manufactures a lot of high-skilled labor-intensive goods. For example, airplanes require a lot of technical knowledge to build them. France also exports many capital-intensive goods such as machinery and equipment.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    The main imports are:

    • Machinery and equipment

    • Vehicles

    • Crude oil

    • Aircraft

    • Plastics

    • Chemicals

    Value of imports: $590.5 billion in 2010

    Percentage of GDP made of imports: ($590.5 billion/$2.583 trillion)*100=22.9%

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of imports is slightly greater, meaning that more money is flowing out of France than going into France.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    France, like some other European nations, has a very skilled labor force and is able to produce very specialized goods. The high level of education offered in France allows them to produce high quality products for around the globe. In that sense, France has a comparative advantage. Also, France has a comparative advantage when selling beverages as French drinks are recognized worldwide as quality drinks. However, France does not possess many natural resources and thus has to import crude oil, for example, which gives France a comparative disadvantage in that sense.

  25. Francescaon 20 Sep 2011 at 6:47 pm

    Italy

    1. What is the value of your home country’s exports (in dollars)?

    Italy’s exports: $448.4 billion (2010 est.)

    2. What are the main exports from your country to the rest of the world?

    Engineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals; food, beverages and tobacco; minerals, and nonferrous metals

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    ($448.4 b / $2.055 trillion ) x 100=22%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Machinery, vehicles, chemicals, metals, manufactures, food, textiles and clothing are both labor and capital intensive. Italy has a high skilled workforce, which is required to produce these kinds of goods and furthermore has expensive and specialized equipment, which is needed for capital intensive goods.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    Engineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; food, beverages, and tobacco.

    $473.1 billion (2010 est.)

    Percentage of Italy’s GDP: ( $473.1 billion / $2.055 trillion ) x 100 =23%

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of imports in Italy is greater than the value of exports, so there is less money floating in the circular flow.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    Italy has a comparative advantage in textile and clothing, machinery, vehicles and food because of its highly skilled labor force and technology. However Italy has a comparative disadvantage as it needs some resources needed for services and the production of goods.

  26. Sarah Eggeron 20 Sep 2011 at 7:49 pm

    1. What is the value of your home country’s exports (in dollars)?

    The value of Switzerland's exports is $232.6 billion (2010 est.)

    2. What are the main exports from your country to the rest of the world?

    Switzerland's main exports are machinery, chemicals, metals, watches and agricultural products.

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    The percentage of GDP represented by exports is 44.41%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Machinery, chemicals, metals, watches, agricultural products which are labor- intensive, capital-intensive, land-intensive.

    Switzerland has high skilled labor which is need in order to produce those goods. In addition, Switzerland has a lot of land which is used for agriculture.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    Switzerland imports machinery, chemicals, vehicles, metals; agricultural products, textiles

    Its value of imports is $226.3 billion.

    And the percentage of GDP made up of imports is 43.2%

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of export is greater in Switzerland. This means that Switzerland earns more money by exporting than they spend by importing; money is going into the economy.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    Switzerland exports machinery, chemicals, metals, watches and agricultural products. Therefore, the comparative advantage is there due to the high skilled labor force. In addition, Switzerland is land-intensive and therefore exports agricultural products. However, products such as vehicles are imported into Switzerland, leading to a comparative disadvantage.

  27. Nathan Pon 20 Sep 2011 at 8:28 pm

    1. $85.83 Billion

    2. Gold, Diamonds, Platinum, metals and minerals, machinery and equipment.

    3. 24.02%

    4. South Africa exports are land-, capital- and labor-intensive. SA exports these goods to the rest of the world because the goods are highly valuable for other industries all over the world.

    5. South Africa imports Chemicals, machinery & equipment, petroleum, scientific instruments and foodstuffs. Imports make up 22.9% of total GDP.

    6. Total exports is greater than total imports, meaning South Africa is not earning losses on its net exports. This means that South Africa is earning profits in the Circular Flow.

    7. South Africa's comparative advantage in it's exports are that South Africa has rich deposits of naturally occurring goods, while it lacks the space to produce certain machines, equipment and other items.

  28. Davidon 20 Sep 2011 at 8:39 pm

    Liechtenstein

    1. What is the value of your home country’s exports (in dollars)?

    $3.92 billion (2008)

    2. What are the main exports from your country to the rest of the world?

    small specialty machinery, connectors for audio and video, parts for motor vehicles, dental products, hardware, prepared foodstuffs, electronic equipment, optical products

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    77.17%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Capital intensive and high skill intensive

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    $2.59 billion (2008)

    agricultural products, raw materials, energy products, machinery, metal goods, textiles, foodstuffs, motor vehicles

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    Export is greater by 1.33 billion, meaning that Liechtenstein is not earning losses on its net exports. This means that Liechtenstein is earning profits in the circular flow.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    Liechtenstein has and needs a very high skilled labor force. The high education in Liechtenstein allows Liechtenstein to produce high quality goods. Another advantage of Liechtenstein is that they are a “tax heaven.” This attracts many firms.

  29. Saugata Mittraon 20 Sep 2011 at 9:08 pm

    1. What is the value of your home country’s exports (in dollars)?

    $225.4 billion

    2. What are the main exports from your country to the rest of the world?

    petroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparel

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    225.4/4060 = (0.05552×100) = 5.552%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    The goods that are exported are both land and labour intensive. Since India has a huge population, to produce vast amounts of polished precious stones, machinery, iron and steel, chemicals, vehicles or apparel, both land resources and human resources are required – India has both.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    crude oil, precious stones, machinery, fertilizer, iron and steel, chemicals

    $359 billion

    359/4060 = (0.08842×100) = 8.842%

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of imports is greater in India than exports. This means that more money is leaving the economy than is coming in in terms of trade. In the circular flow of income, more income is leaving the circular flow than is being injected in.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    India has a comparative advantage in terms of labour-intensive skills. India also has a highly educated and populous working force and is thus able to obtain a comparative advantage over other countries due to these qualities.

  30. Andrea Con 20 Sep 2011 at 9:14 pm

    1. What is the value of your home country’s exports (in dollars)?

    $448.4 billion

    2. What are the main exports from your country to the rest of the world?

    Engineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals; food, beverages and tobacco; minerals, and nonferrous metals

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    ($448.4 billion / $1.774 trillion) x 100=25.3% of the GDP

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Italy exports mostly capital intensive goods, such as production machinery, motor vehicles, transport equipment and clothing. It exports these things because it has done so for many years, and because of this it holds perfected skills and machinery that make it able to export capital intensive goods.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    ($473.1 billion/ $1.774 trillion) x 100=26.7% of the GDP

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of imports is greater than the value of exports in Italy. This means that the circular flow of income isn't ideal for Italy's economy seeing as there is more money leaving it than entering it.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    Italy has a comparative advantages in motor vehicles because of its skills and advanced technology.

  31. Danon 20 Sep 2011 at 9:54 pm

    1. What is the value of your home country’s exports (in dollars)?

    $410.3 billion

    2. What are the main exports from your country to the rest of the world?

    Manufactured goods, chemicals, fuels, food, beverages, tobacco

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    18.3%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Britain’s exports consist mostly of goods which are either capital or land intensive

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    Imports make up 25% of the UK's GDP at $561.6 billion, the majority of imports are machinery, food, fuel and manufactured goods.

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of imports is greater than that of exports, meaning that there is leakage in circular flow since there is a higher consumption of goods produced abroad.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    The United Kingdom has an advanced labour force and advanced capital, which give it a comparative advantage in the production of chemicals and manufactured goods. However it does not have large quantities of natural resources such as oil, meaning it is forced to import and has a comparative disadvantage.

  32. Nicholas M.on 20 Sep 2011 at 10:03 pm

    Statistics for Poland:

    1. What is the value of your home country’s exports (in dollars)?

    $162.3 Billion

    2. What are the main exports from your country to the rest of the world?

    Machinery and transport equipment 37.8%, intermediate manufactured goods 23.7%, miscellaneous manufactured goods 17.1%, food and live animals 7.6%

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    162.3/721.3 = 22.5% of the GDP.

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    About 40% of exports are machinery and transport equipment, which are generally quite capital-intensive and labor-intensive. Accounting for another 40% are manufactured goods, which are labor-intensive and to a certain extent capital-intensive. At 10%, food and live animals are very land-intensive.

    Regionally, Poland presents low costs of production to firms due to its relatively large unskilled labor force in comparison to the rest of Europe. However, high investor confidence in Poland means there is also ample foreign capital, thus accounting for much of the machinery and transport equipment produced. Lastly, Poland’s population density is low and its soil is fertile, conducive to the land-intensive job of growing food and raising livestock.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    Interestingly, Poland imports machinery and transport equipment 38%, intermediate manufactured goods 21%, chemicals 15%, minerals, fuels, lubricants, and related materials 9%. This is similar to Poland’s exports, though there is a notable absence of food and livestock from the list. The dollar value of total imports was $170.2 billion. It makes up 23.6% of the GDP.

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    Imports are marginally higher than exports, giving the value of net exports at -$7.9 billion. This means there is a slight leakage from the circular flow of income for Poland.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    Comparative advantage theory states that a nation should produce goods that have the lowest opportunity cost for that nation in relation to its trade partners. Thus, it is logical that Poland exports very labor and land-intensive goods. Since wage rates are lower in Poland than many other places in Europe, and there is a low population density and a lot of arable land, Poland thus has a comparative advantage in agricultural products and manufactured goods. Basically, land is cheap and labor is cheap, therefore costs of production are relatively low for firms operating in the manufacturing or agricultural sectors, and given the subsequently low prices of these goods, Poland has a much lower opportunity cost to produce these goods.

  33. Philippaon 20 Sep 2011 at 10:15 pm

    1. What is the value of your home country’s exports (in dollars)?

    $410.3 billion (2010 est.)

    2. What are the main exports from your country to the rest of the world?

    manufactured goods, fuels, chemicals; food, beverages, tobacco

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    410.3 billion/2.173 trillion X 100 = 18.88%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    My country exports food which is a land-intensive type of good, as is fuel. Manufactured goods are more capital intensive. Some parts of Britain have vast amounts of flat, fertile land which is good for the farming industry, and capital is fairly advanced for the manufacturing of goods.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    Manufactured goods, machinery, fuels; foodstuffs

    $561.6 billion (2010 est.)

    561.6 billion/2.173 trillion X 100 = 25.84%

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    Value of imports is greater than exports, meaning there is a leakage from the circular flow as foreign products are consumed by both households and firms.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    Britain most likely has a comparative advantage in manufactured goods and chemicals because these are the two sectors that are most likely to have the lowest opportunity cost. Britain imports more fuel than it exports because it is not a country with great oil resources and imports machinery probably because other countries are more efficient at making machinery. Britain has a skilled labour force and is a technologically developed nation, therefore would have a comparative advantage in these sectors.

  34. Philip Behrendson 20 Sep 2011 at 10:25 pm

    Germany

    Questions:

    1. What is the value of your home country’s exports (in dollars)?

    $1.303 trillion

    2. What are the main exports from your country to the rest of the world?

    Machinery, vehicles, chemicals, metals and manufactures, foodstuff, textiles

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    – 1.303/2.94= 0.4431

    – GDP %44.31

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Germany exports Machinery, vehicles, chemicals, metals and manufactures, foodstuff and textiles which are all high skilled labor intensive. It exports these goods as the country has a highly skilled labor force.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    Germany imports Machinery, vehicles, chemicals, foodstuffs, textiles, metals.

    The dollar value of all imports is 1.099 trillion $

    $1.099 trillion /$2.94 trillion= 37.38 %

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of exports is larger which leads to Germany experiencing a trade surplus in the circular flow.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    Germany has a comparative advantage in cars and technology as well as machinery, as it possesses the capital to create these. It has a highly skilled workforce, specializing in manufacture in addition to the technology required to produce such goods. Germany though, needs to import all other resources, such as the raw materials for the production of vehicles, from other countries which reduces its comparative advantage.

  35. Juliuson 21 Sep 2011 at 9:15 am

    1. $485.9 billion

    2. Food processing, chemicals, and oil refinery.

    3. 485.9/783.3 billion* 100% = 62%

    4. Land and capital intensive,

    5. Total of $429 billion imports in 2010, mainly financial services. Percentage of imports = 429/783.3 billion * 100% = 54.7%

    6. Export is greater,meaning there is an injection into the circular flow of income.

    7. Main exports most likely have a comparative advantage,a good example is food processing. Addidtion to that, agriculture seems to be at comparative advantage, only 2 percent of the population is employed in this sector due to it being highly mechanized.

  36. Orpaon 21 Sep 2011 at 9:17 am

    1. What is the value of your home country’s exports (in dollars)?

    $15.97 billion

    2. What are the main exports from your country to the rest of the world?

    garments, frozen fish and seafood, jute and jute goods, leather

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    15.22%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Labor intensive – generally low skill. It exports all of this because it is cheaper for the rest of the world to get these products here than it is to get them else where.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    Imports: machinery and equipment, chemicals, iron and steel, textiles, foodstuffs, petroleum products, cement.

    Dollar value:

    $21.34 billion

    Percentage: 20.34%

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    Value of import is greater than the value of exports, this means the economy is spending more money than in flowing in from their exports.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    They have a comparative advantage because they have skill sin dealing with good such as leather and garments, this is clear because it is part of their main exports, thus they have developed the skills better than other countries.

  37. Luka L.on 21 Sep 2011 at 10:37 am

    1. What is the value of your home country’s exports (in dollars)?

    – $2.46 billion (2010 est.)

    2. What are the main exports from your country to the rest of the world?

    – Scrap metal, wine, mineral water, ores, vehicles, fruits and nuts

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    $2.46 billion /$22.44 billion = 10.96%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Georgia exports some machinery, but a lot of mineral water coupled with wine, as well as natural goods such as fruits and nuts. Thus they are both land and labor intensive.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    -$5.027 billion. Fuels, vehicles, machinery and parts, grain and other foods, pharmaceuticals. -$5.027 billion/$22.44 billion = 22.4%

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of imports is higher than the value of exports, and what this means is that net exports, which determine the Aggregate Demand within in nation, are negative. This means that Georgian spends more money on acquired goods then it does exporting it, and as a result Georgia is not rich in natural resources. Thus, there is a leakage in the Georgian economy, as all the goods imported are money escaping the country, which could have been put back into Georgia’s economy.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    One advantage Georgia has is that it exports a lot of wine, and produces a lot of wine. Even though wine is not a necessary commodity, it is still widely demanded throughout the world. As a result, Georgia does not import wine, as it has an abundant collection of it. In addition, Georgia has a decent agriculture and as a result, does not import many foods from other nations.

  38. Reem Hassanon 21 Sep 2011 at 12:47 pm

    What is the value of your home country’s exports (in dollars)?

    $25.02 billion (2010 est.)

    What are the main exports from your country to the rest of the world?

    Natural gas, oil, electricity, cotton, metal products, chemicals and processed food.

    Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    $25.02/$497.8 billion x 100 = 5.03%

    What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Oil, Natural gas and electricity. land intensive

    What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    It imports machinery and equipment, foodstuffs, chemicals, wood products, fuels, electricity and oil. country's imports: $51.54 billion (2010 est.). percentage of country's GDP made up of imports: $51.54/$497.8billion x 100 = 10.3%

    What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of imports is greater than the value of exports which means more money is spent on imports rather than spending money to export goods. More money is spent on imports so money is leaving the country.

    Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    Egypt's comparative advantage is oil and electricity because other nations desire it and require it. More demand for oil and electricity compared to other goods.

  39. Matt Beattieon 21 Sep 2011 at 2:04 pm

    1. What is the value of your home country’s exports (in dollars)?

    My Country's exports has an unknown value in the fact book.

    2. What are the main exports from your country to the rest of the world?

    The main exports from my country to the rest of the world are tweeds, herring, processed shellfish, beef and lamb

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    The type of goods which the Isle of Man exports are mostly land-intensive as they are mostly farming or fishing goods such as beef, lamb or herring. My country exports what it does to the rest of the world because it is easy to access.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    My country imports timbers, fertilizers and fish, however, the value of my country's imports aren't available.

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    As the value of imports and exports are not available on the website it is impossible to say. However, the range of goods which the Isle of Man imports are smaller than the range that they export and most of the imported factors are things which help produce farm animals which are two factors of the export.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    The Isle of Man has a comparative advantage in goods such as lamb and beef as well as different fish as they are surrounded by the sea and they are vastly covered by fields proving, in comparison to the size of the island, a large amount of animals and farms.

  40. Kristyon 21 Sep 2011 at 2:19 pm

    1. What is the value of your home country’s exports (in dollars)?

    $210.9 billion

    2. What are the main exports from your country to the rest of the world?

    coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport equipment

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    210.9/$882.4 billion = 23.9 %

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    machinery and transport equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum products

    $195.2 billion

    195.2/$882.4 = 22.1%

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    exports, makes circular flow larger

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

  41. […] a post entitled “If Iceland can get rich, anyone can” blogger Jason Welker asks the question: “How did a barren rock in the middle of the North […]

  42. Cedricon 21 Sep 2011 at 5:32 pm

    Colombia:

    What is the value of your home country’s exports (in dollars)?

    $ 40.78 Billion Dollars

    What are the main exports from your country to the rest of the world?

    – petroleum, coffee, coal, nickel, emeralds, bananas, cut flowers

    Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    40.78/435.4= .0936 *100=9.36%

    What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Colombia exports mainly land intensive goods such as coffee, banana and flowers due to the fact that they have the resources to provide such goods. Since Colombia has a relatively high unemployment rate of 11.8%, labor intensive exports are not the primary exports of the country as people do not the have required resources.

    What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    Colombia imports industrial equipment, transportation equipment, consumer goods, chemicals, paper products, fuel and electricity. The dollar value of their exports is $ 38.64 Billion Dollars. The percentage of Colombia's GDP made up of imports is 38.64/435.4= 8.7%

    What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    The value of exports is greater in my country. What this suggest about my nation's "circular flow" of income is that there is a trade surplus in Colombia.

    Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    Colombia has a comparative advantage in coffee, banana exports and flowers. Colombia possesses such consumer goods. Since labor in Colombia is rather cheap due to the low amount of wages that firms have to pay, Colombia is a perfect example of a labor intensive nation. Goods are rather cheap to produce in Colombia and therefore exporting bananas, coffee and flowers require low skilled labor.

  43. Ignacioon 21 Sep 2011 at 8:33 pm

    1. What is the value of your home country’s exports (in dollars)?—> 253 billion

    2. What are the main exports from your country to the rest of the world?—>Oil, electricity, natural gas

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    -17.94%—>18.0%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Capital Intensive and land intensive Goods. Because it has a large supply of those goods and can trade for other good with the income earned.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    -Electricity, oil,

    machinery and equipment, fuels, chemicals, semifinished goods, foodstuffs, consumer goods, measuring and medical control instruments.

    – 23%

    What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    – 315.3 billion That’s there is more money going out than there is going in.

    Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

    – Spain has a comparative advantage in Olive oil, and natural gas since it has large spaces filled with olives and due to immigration from both Africa & South America the labor is quite cheap,furthermore it also has a comparative advantage in natural gas.

  44. Shelleyon 23 Sep 2011 at 8:31 am

    1. What is the value of your home country’s exports (in dollars)? (Lebanon)

    $5.757 billion (2010 est.)

    2. What are the main exports from your country to the rest of the world?

    jewelry, base metals, chemicals, miscellaneous consumer goods, fruits and vegetables, tobacco, construction minerals, electric power machinery and switchgear, textile fibers, paper.

    3. Calculate the percentage of your nation’s GDP is represented by exports (divide the dollar value of exports by the dollar value of GDP, and multiply by 100).

    14.667%

    4. What types of goods does your country export? Are they land-intensive? Labor-intensive? Capital-intensive? Discuss why your country exports what it does to the rest of the world.

    Jewelry, base metals, chemicals, miscellaneous consumer goods, fruit and vegetables, tobacco, construction minerals, electric power machinery and switchgear, textile fibers, paper.

    Many of Lebanon's exports are very diverse, although there are many land and labor-intensive goods/services, because they have the comparative advantage in making this like jewelry, chemicals, consumer goods, tobacco, electric power machinery, textile fibers, etc. Lebanon specializes in different things – land-intensive, labor-intensive, and capital-intensive.

    5. What does your country import? What is the dollar value of your country’s imports? What is the percentage of your country’s GDP made up of imports?

    Petroleum products, cars, medicinal products, clothing, meat and live animals, consumer goods, paper, textile fabrics, tobacco, electrical machinery and equipment, chemicals.

    $17.58 billion. (Dollar value of country's imports)

    44.789% (Percentage of country's GDP made up of imports) – so basically 45%.

    6. What is greater, the value of imports or the value of exports in your country? What does this mean for your nation’s “circular flow” of income?

    Imports make up a greater value of Lebanon's economy. This means that Lebanon relies more on imports to keep their economy flowing, rather than their exports. By relying more on imports, it makes Lebanon more susceptible to having a downturn in their economy, because if for example France suddenly stops their productions of goods or services, or France goes into a fiscal crisis, then Lebanon's economy will also fall.

    7. Referring to the principal of comparative advantage, discuss the composition of your nation’s exports and imports. What types of goods or services do you think your nation has a comparative advantage in? How can you tell?

  45. Khephren M Non 23 Sep 2011 at 11:26 am

    1. Belgium exports 284 billion dollars’ worth of goods and service.

    2. Belgium’s biggest exports to the rest of the world are machinery and equipment, chemicals, finished diamonds, metals / metal products and foodstuffs.

    3. Belgium’s exports account for 61% of its GDP (284/465 in billions of dollars)

    4. Metal and foodstuffs are land intensive goods, they are dug out and grown on the land.

    Machinery and Equipment are labor intensive goods, you need to create them. Belgium has available land to create these machines and the equipment. Chemicals are also high skilled labor intensive and capital intensive, they need special skill to be created and a lot of technology. Finished diamonds are also high skilled labor intensive goods. Diamonds are imported from other countries but are cut and prepared by the high skilled workers.

    5. Belgium imports raw materials, machinery and equipment, chemicals, raw diamonds, pharmaceuticals, foodstuffs, transportation equipment and oil products. This accounts for also 61% of Belgium’s GDP.

    6. Belgium has perfectly balanced trade; it spends on import as much as they get back on exports. This means that the circular flow of Belgium will remain stable in the future.

    7. I think that Belgium doesn’t have a comparative advantage on any of the products it exports. The only advantage I believe Belgium has in its exports is finished diamonds. They import diamonds from the DRC (Democratic Republic of Congo), they cut them and finish them with special machinery. Looking at the Congo’s exports sheet. It exports 20% of their goods to Belgium which means Belgium can get diamonds at a cheaper price and make a higher profit when the diamonds are finished. Other exports such as food, machinery and equipment, any country around the world can do that so there is no comparative advantage in that at all.