The theory of comparative advantage is proven invalid when the United States sells steel to Japan and purchases the final products from Japan.

Question

Quizplus · Accepted Answer

The theory of comparative advantage is still valid in this scenario. The United States may have a comparative advantage in producing steel, while Japan may have a comparative advantage in producing the final products. By trading, both countries can benefit and maximize their efficiency.

The Theory of Comparative Advantage Is Proven Invalid When the United