What are absolute advantage and comparative advantage? Explain these two concepts and demonstrate your understanding by using a two-country and two product model.

International Finance Assessment Component 001 Requirements and Guidance Coursework: A 2,000 words academic essay.Weighting: 20% (FE6005)40(FE6005A)

Submission: Online submission via Turnitin on module Weblearn
Contents: The required academic essay should include the following sections:
1. Learning experience 200 words Reflectively discuss the new knowledge you have learnt during the first 6 weeks of
the lectures and seminars of this module.
2. The theory of absolute advantage and comparative advantage 500 words
What are absolute advantage and comparative advantage? Explain these two
concepts and demonstrate your understanding by using a two-country and two product model. To simplify, the resources required for production are measured by hours needed to produce certain goods.
3. Forward and future contracts 300 words Compare and contrast forward and future contracts by discussing a minimum of six
differences between them.
4. The trade balance and J-curve effect 500 words
a) Explain why a stronger dollar could enlarge the US balance of trade deficit.
b) “A floating exchange rate will adjust to reduce or eliminate any current account
deficit .Is this statement accurate? Discuss
c) What is a “J-curve effect”? Explain