Exploring Comparative Advantage and Balance of Trade

Miacademy & MiaPrep Learning Channel

This educational video provides a comprehensive overview of two fundamental economic concepts: comparative advantage and the balance of trade. Through the examples of Brazil (an agricultural powerhouse) and Japan (a technological hub), the video illustrates how countries decide which goods to specialize in and trade. It breaks down the mathematical logic behind opportunity costs, showing why it benefits nations to trade even for goods they could produce themselves.