1. Comparative advantage

• Choose any two countries chosen from the list of countries listed in Annex 1. For each country, identify an industry or industries in which the chosen countries have comparative advantage. You must use relevant data/statistics to support your analysis used in the identification
• Explain the reasons/sources of the comparative advantage in each of the chosen countries
• Suggest ways to improve the comparative advantage in each country
• Reasons for the flow of trade and investment, the factors affecting the industry or industries and how Australia can benefit from these countries

Choose any two countries from the list of countries listed in Annex 1. For each country, analyse its terms-of-trade trend over the last 10 years using relevant facts/figures

Identify and analyse factors affecting the trend in the terms-of-trade for each of the chosen countries

Analyse how the terms-of-trade affect welfare in the chosen countries Advise the Minister on any benefits from these countries to Australia