Which country has comparative advantage in cars?

Why does the United States produce more cars than Brazil?

Because of high labor costs and taxes, Brazil-made cars and trucks are too expensive to send abroad and go mostly to local buyers. Mexican factories export 8 out of every 10 cars they produce—with more than half bound for the U.S.

Does Japan have an absolute advantage or comparative advantage?

Since Japan’s opportunity cost is lower, Japan has comparative advantage on fish production and will export fish. The comparative advantage of cloth is found the same way. China’s comparative advantage is on cloth production because China has a lower opportunity cost.

Does the US have a comparative advantage in cars?

The US has an absolute advantage in producing both cars and trucks. However, it has a comparative advantage in trucks. This is because it is better at producing them. Although it is 1.2 times better than Japan in producing cars, it is 4 times better at producing trucks.

What is the United States absolute advantage?

So, all else equal, the United States has an absolute advantage in the production of copper wire. Therefore, the United States should produce copper wire, sell it or trade it with Mexico or other countries, and buy other goods from them. Trade also involves another type of advantage—comparative advantage.

Which country has an absolute advantage in the production of a car and II computers Why?

China has the absolute advantage in producing cars, and the comparative advantage (China’s opportunity cost in producing one car is 11/3 laptops, for Japan it is 2 laptops).

Which country has an absolute advantage in the production of washing machines?

similarly, U.S. also has an absolute advantage in producing washing machines because fewer workers are required to produce one washing machine in the U.S. b.

Which country has a comparative advantage in the production of cars and which one has a comparative advantage in the production of washing machines?

The United States has an absolute advantage in producing automobiles and washing machines. The United States has a comparative advantage in the production of automobiles. Italy has a comparative advantage in the production of washing machines.

Which country has the absolute advantage in beef?

Brazil has the absolute advantage in producing beef and the United States has the absolute advantage in autos. The opportunity cost of producing one pound of beef is 1/10 of an auto; in the United States it is 3/4 of an auto.

Which nation has the absolute advantage in producing corn?

The United States has an absolute advantage in the production of corn. To simplify, let’s say that Saudi Arabia and the United States each have 100 worker hours (see Table 19.2).

What is Saudi Arabia’s absolute advantage?

In Table 19.1, Saudi Arabia has an absolute advantage in the production of oil because it only takes an hour to produce a barrel of oil compared to two hours in the United States. The United States has an absolute advantage in the production of corn.

Which country has the absolute advantage in the production of soybeans?

answer by deriving the opportunity costs of each. Canada has the absolute advantage in the production of corn and Mexico has the absolute advantage in the production of soybeans.

What is the United States comparative advantage?

The United States’ comparative advantage is in specialized, capital-intensive labor. American workers produce sophisticated goods or investment opportunities at lower opportunity costs. Specializing and trading along these lines benefit each.

What is China’s absolute advantage?

Answer and Explanation: China has the largest population of any country in the world. Because of this, they have a larger labor force than any country on the planet. This means that China has an absolute advantage in producing any product that requires a high number of workers to produce.

What is China’s competitive advantage?

It demonstrates that the competitive advantages of those industries include low cost structures, a pool of highly skilled engineers and scientists, a sophisticated science and technology infrastructure, a growing domestic market with enormous potential, and a cluster of related high-tech industries that benefit each

What does the UK have comparative advantage in?

Within this services specialism, the UK has a well-known, strong advantage in financial services, insurance and other business services, exporting more than double the global average share ($230 billion across these three services categories).

Does UK have an absolute advantage?