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

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
Note: This academic essay should also include a brief introduction and good conclusion.
The word count is given only to the main sections of the essay.