Explanation should include

the definition of balance of trade(the difference between a country's exports and imports)
an examination of the concepts of absolute and comparative advantage
a commentary on how absolute and comparative advantage relate to balance of trade in the global marketplace.

Process/Skill Questions:

What are the economic effects of imports exceeding exports and vice versa?
Given two countries, compare their balance of trade. Do selected countries have a trade deficit or trade surplus? How is each country affected by its trade status?
What is the effect of a strong currency on a nation's balance of trade? What is the effect of a weak currency?
Why is one country able to produce a good or service more efficiently than another?
Given two countries, for which goods/services does each country have a comparative advantage? An absolute advantage? How is each country affected by its particular advantage?
When does a nation have a favorable balance of trade?
What is the difference between comparative advantage and absolute advantage?