Does Japan have a comparative advantage in cars?

Thanks to its prowess in engineering and factory management, Japan has acquired a strong comparative advantage in the auto sector. Imports from Japan ensure a highly competitive US market, to the advantage of US households.

Why does Japan have a comparative advantage in cars?

Japan has a comparative advantage in producing cars, since it has a lower opportunity cost in terms of grain given up. The United States has a comparative advantage in producing grain, since it has a lower opportunity cost in terms of cars given up.

Does Japan have an absolute advantage in cars?

Since Japan is more efficient in the production of cars and the United States is more efficient in the production of food, Japan has an absolute advantage in the production of cars and the United States has an ab- solute advantage in the production of food. To produce this car Japan needs six units of labor.

Does Japan have absolute or comparative advantage?

Japan has absolute advantage in producing both fish and cloth because one worker can produce more of either goods in Japan. Absolute advantage is determined by comparing the absolute productivity in different countries of producing each good.

What country has an absolute advantage over the US?

When nations increase production in their area of comparative advantage and trade with each other, both countries can benefit….Mutually Beneficial Trade with Comparative Advantage.

Country	Shoe Production	Refrigerator Production
United States	3,500	26,000
Mexico	6,000	2,500
Total	9,500	28,500

Which country has comparative advantage?

In economic terms, a country has a comparative advantage when it can produce at a lower opportunity cost than that of trade partners. While a country cannot have a comparative advantage in all goods and services, it can have an absolute advantage in producing all goods.

What country has comparative advantage?

What is an example of a country with a comparative advantage?

A contemporary example: China’s comparative advantage with the United States is in the form of cheap labor. Chinese workers produce simple consumer goods at a much lower opportunity cost. The United States’ comparative advantage is in specialized, capital-intensive labor.

What competitive advantage does Japan have in the world market?

– Access to huge Asian markets for industrial products. With lower logistics (transaction and transportation) costs, Japan had price advantages in export markets (over Europe and U.S.), and, of course, little competition within Asia.

What is Canada’s comparative advantage?

Canada has comparative disadvantage in manufactured goods. The patterns of Canada’s revealed comparative advantage has remained fairly stable with a few exceptions. Trade and foreign investment play a particularly important role in Canada’s economy. Trade is equivalent to about 80\% of Canadian GDP.

Does Japan have a comparative advantage in international trade?

However, Japan’s comparative advantage in this category, as measured by Baldwin and Okubo’s (2019) method, tumbled after the Global Crisis, while Korea’s and Taiwan’s soared.

What are the competitive advantages of being a Japanese?

That is the advantage I feel everyday as a Japanese. If you respect and polite to the local people, you get the same from them. We can see competitive advantages by checking exports. All of top 10 most important exports in Japan are high tech manufacturing.

What determines the structure of comparative advantage across 167 product categories?

The structure of comparative advantage across 167 manufactured product categories in the two countries is estimated econometrically as a function of interindustry differences in factor intensities.

What are the asset and advantage of Japan?

The asset and advantage Japan have are well educated people. When the most of the countries around Japan were colonized, Japan was not. Simple because the most of the people could write, read & had basic mathematic skills. It is still the same now, almost 100\% literacy, well mannered and hard working population, that is the asset and advantage.