Asked by
Benjamin Kincaid
on Dec 08, 2024
Verified
China has a comparative advantage in textiles and an absolute advantage in both textiles and radios. Japan has a comparative advantage in radios. According to this scenario
A) Japan should import both radios and textiles.
B) China should export both radios and textiles.
C) China should export textiles and import radios.
D) Japan should export textiles and import radios.
Absolute Advantage
The ability of an entity to produce a good or service more efficiently than its competitors, using fewer resources.
Textiles
Materials made from fibers, filaments, threads, or yarns, typically used in the production of fabrics and cloth.
- Identify conditions under which countries should specialize in the production of certain goods and engage in trade.
- Analyze scenarios to determine which country has a comparative or absolute advantage in the production of specific goods.
Verified Answer
AG
Learning Objectives
- Identify conditions under which countries should specialize in the production of certain goods and engage in trade.
- Analyze scenarios to determine which country has a comparative or absolute advantage in the production of specific goods.