The source of a nation's comparative advantage
A) is created from the mixture of its own labor skills, access to capital, and technology.
B) is determined by its military capability.
C) remains constant over time.
D) is an outdated concept for the 21st century because of the process of globalization.

Question

Quizplus · Accepted Answer

A nation's comparative advantage is determined by its mix of labor skills, access to capital, and technology. As these factors change over time, a nation's comparative advantage can also change. It is not determined by military capability and is not a static concept. While globalization can impact a nation's comparative advantage, it does not make the concept outdated.

The Source of a Nation's Comparative Advantage