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This video compares absolute and comparative advantage in mathematical terms.

I chose it because I wanted to get a better view on the differences between total and Comparative advantage in the padlet.

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Comparative Advantage; How to Calculate it. Economics, AP Microeconomics

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Another video about comparative advantage. Comparing opportunity costs in more detail than other videos.
Comparative costs are delved into as well.

I chose this video due to its' more comprehensive coverage of relative costs.

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Economics of Trade - Comparative vs Absolute Advantage

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This lecture explores why nations trade, even if they have all the resources they need.

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Real world applications for Comparative Advantage can be found quite easily, but in this instance, one country getting greedy and trying to boost their own comparative advantage can lead to backlash. We see this clearly in the 'USA vs The World' trade war going on today. Mexico, the EU and Canada all applying retaliatory measures against the USA.

I chose these videos because they clearly demonstrate the negatives of relying on trade. Another nation's volatility can become your issue if your trade with them is high enough.

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Canada's foreign minister announced Friday that Ottawa plans to impose about $12.6 billion worth of retaliatory tariffs on U.S. goods on July 1, joining other major U.S. allies striking back in the escalating trade dispute.

The country is working closely with the European Union and Mexico, according to Foreign Minister Chrystia Freeland.

"We will not escalate, and we will not back down," Freeland said.

Canada's announcement is part of larger fallout from U.S. President Donald Trump's announcements on trade. The U.S. has levied tariffs of 25 percent on steel and 10 percent on aluminum on Canada, the EU and other nations. As a result, some of the U.S.' biggest trading partners have retaliated with counter-tariffs.

Canada's plan taking effect next week will include imports of U.S. products such as yogurt, caffeinated roasted coffee, toilet paper and sleeping bags. Mexico's tariffs took effect June 5 on U.S. products such as pork, cheese, cranberries, whiskey and apples. The EU enacted tariffs Friday on more than $3 billion worth of U.S. goods including bourbon, yachts and motorcycles.

The U.S. accounted for 55 percent of Canada's steel imports in 2017, with the remainder coming from China, South Korea, Brazil and Turkey.

The White House's stated goal in implementing tariffs is protecting U.S. jobs, but the initial business response suggests that U.S. companies are taking a hit. Companies are coping with the tit-for-tat tariffs by increasing prices or making business changes to cope with higher costs.

WATCH: Trump takes trade policy on the road

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Canada makes retaliatory tariffs official: 'We will not back down'

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Canada's foreign minister announced Friday that Ottawa plans to impose about $12.6 billion worth of retaliatory tariffs on U.S. goods on July 1, joining other major U.S. allies striking back in the escalating trade dispute. The country is working closely with the European Union and Mexico, according to Foreign Minister Chrystia Freeland.

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I decided to include this as an example of the detriments of international trade: Comparative advantage only is mutually beneficial if both parties keep in mind the other party's opportunity costs.

In this instance, Donald Drumpf (Trump) imposing tariffs on one of his countries' closest allies, both economically and politically, is and continues to be a problem between our two countries, demonstrating a lack of understanding, not only of politics, but also of international economics.

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WASHINGTON - A Canadian source close to the ongoing talks to resolve U.S. tariffs on steel and aluminum is insisting Canada is not about to agree to quotas or other limits on its exports in order to get the levies lifted.

The source, speaking on condition of anonymity in order to discuss sensitive negotiations, calls the idea of a quota system ridiculous and a concession that Canada is not prepared to make.
WATCH: What is a trade war and how tariffs work

That's despite other sources saying quotas have been on the table as the two sides work towards getting the tariffs lifted before voters south of the border head to the polls for midterm elections Nov. 6.

Donald Trump imposed the so-called Section 232 tariffs - 25 per cent on steel and 10 per cent on aluminum - back in June on national security grounds.

But the levies, which the U.S. president says helped to expedite a new North American trade deal, did not go away when the U.S.-Mexico-Canada Agreement was reached at the 11th hour last month.

READ MORE: Steel tariffs 'staying' despite new trade deal: Trump

Canada imposed retaliatory tariffs on nearly $13 billion worth of U.S. imports - measures that are being felt in places like Kentucky, home to Republican Senate majority leader Mitch McConnell and Kelly Craft, the U.S. ambassador to Canada.

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U.S. tariffs talks continue as official insists Canada won't agree to 'ridiculous' quotas

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WASHINGTON - A Canadian source close to the ongoing talks to resolve U.S. tariffs on steel and aluminum is insisting Canada is not about to agree to quotas or other limits on its exports in order to get the levies lifted.

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This is a rather interesting video on the subject, using a simplified model to explain how countries choose production based on their own efficiency and neighboring countries' capabilities, and how trade between said countries can be mutually beneficial.

I chose this video as a global introduction to the topic, as it clearly outlines the premises of comparative advantage and how it effects economic decisions. While it does compare countries other than Canada and the US, the applicable knowledge here is universal.

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Comparative Advantage and Gains from Trade I A Level and IB Economics

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The short answer is rather simple. Because people stand to gain more. The long answer, the why, is explained here. Essentially, countries that specialize in a specific product tend to become more efficient over time at delivering said product. As the opportunity cost decreases, the availability increases.

This website explains the advantages and disadvantages of trade, while having an internal link to a specific page outlining comparative advantage

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Why do countries trade?

Countries trade with each other when, on their own, they do not have the resources, or capacity to satisfy their own needs and wants. By developing and exploiting their domestic scarce resources, countries can produce a surplus, and trade this for the resources they need.

Clear evidence of trading over long distances dates back at least 9,000 years, though long distance trade probably goes back much further to the domestication of pack animals and the invention of ships. Today, international trade is at the heart of the global economy and is responsible for much of the development and prosperity of the modern industrialised world.

Goods and services are likely to be imported from abroad for several reasons. Imports may be cheaper, or of better quality. They may also be more easily available or simply more appealing than locally produced goods. In many instances, no local alternatives exist, and importing is essential. This is highlighted today in the case of Japan, which has no oil reserves of its own, yet it is the world's fourth largest consumer of oil, and must import all it requires.

The production of goods and services in countries that need to trade is based on two fundamental principles, first analysed by Adam Smith in the late 18 th Century (in The Wealth of Nations, 1776), these being the division of labour and specialisation.

Division of labour

In its strictest sense, a division of labour means breaking down production into small, interconnected tasks, and then allocating these tasks to different workers based on their suitability to undertake the task efficiently. When applied internationally, a division of labour means that countries produce just a small range of goods or services, and may contribute only a small part to finished products sold in global markets. For example, a bar of chocolate is likely to contain many ingredients from numerous countries, with each country contributing, perhaps, just one ingredient to the final product.

Specialisation

Specialisation is the second fundamental principle associated with trade, and results from the division of labour. Given that each worker, or each producer, is given a specialist role, they are likely to become efficient contributors to the overall process of production, and to the finished product. Hence, specialisation can generate further benefits in terms of efficiency and productivity.

Specialisation can be applied to individuals, firms, machinery and technology, and to whole countries. International specialisation is increased when countries use their scarce resources to produce just a small range of products in high volume. Mass production allows a surplus of goods to be produced, which can then be exported. This means that goods and resources must be imported from other countries that have also specialised, and produced surpluses of their own.

When countries specialise they are likely to become more efficient over time. This is partly because a country's producers will become larger and exploit economies of scale. Faced by large global markets, firms may be encouraged to adopt mass production, and apply new technology. This can provide a country with a price and non-price advantage over less specialised countries, making it increasingly competitive and improving its chances of exporting in the future.

International trade brings a number of valuable benefits to a country, including:

1. The exploitation of a country's comparative advantage, which means that trade encourages a country to specialise in producing only those goods and services which it can produce more effectively and efficiently, and at the lowest opportunity cost.

2. Producing a narrow range of goods and services for the domestic and export market means that a country can produce in at higher volumes, which provides further cost benefits in terms of economies of scale.

3. Trade increases competition and lowers world prices, which provides benefits to consumers by raising the purchasing power of their own income, and leads a rise in consumer surplus.

4. Trade also breaks down domestic monopolies, which face competition from more efficient foreign firms.

5. The quality of goods and services is likely to increases as competition encourages innovation, design and the application of new technologies. Trade will also encourage the transfer of technology between countries.

6. Trade is also likely to increase employment, given that employment is closely related to production. Trade means that more will be employed in the export sector and, through the multiplier process, more jobs will be created across the whole economy.

Despite the benefits, trade can also bring some disadvantages, including:

1. Trade can lead to over-specialisation, with workers at risk of losing their jobs should world demand fall or when goods for domestic consumption can be produced more cheaply abroad. Jobs lost through such changes cause severe structural unemployment. The recent credit crunch has exposed the inherent dangers in over-specialisation for the UK, with its reliance on its financial services sector.

2. Certain industries do not get a chance to grow because they face competition from more established foreign firms, such as new infant industries which may find it difficult to establish themselves.

3. Local producers, who may supply a unique product tailored to meet the needs of the domestic market, may suffer because cheaper imports may destroy their market. Over time, the diversity of output in an economy may diminish as local producers leave the market.

Go to comparative advantage

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Why do countries trade?Countries trade with each other when, on their own, they do not have the resources, or capacity to satisfy their own needs and wants.

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Another rather simplistic look at comparative advantage and specialization, this time on a micro level.

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Well, this is more of a slideshow, really, but it's very informative. It goes over the theory of comparative advantage in a comprehensible, visual manner.

I chose it because it's different from the other two in presentation, and therefore breaks up monotony.