IB skill practice

Analyse international trade and comparative advantage

Economics SL global economy skill with original exam-style diagram, data-response, and evaluation seeds.

Paper 1, Paper 2 5 marks Difficulty 2

Explain comparative advantage

A Wellington balance-of-payments data response says Country A gives up 2 units of wheat to make one extra unit of wine, while Country B gives up 5 units of wheat. Explain which country has the comparative advantage in wine. Use the labelled diagram, data, or extract evidence before writing the answer. Enter the answer and choose the interpretation that best matches the global-economy evidence.

Worked practice: economic evidence and answer

Identify the economic evidence first, then state the result and interpretation.