An example of an acquired comparative advantage is
A) the United States producing more agricultural products than other countries because land is more abundant in the United States than in other countries.
B) United States consumers buying television sets produced in Japan because Japanese companies have a reputation for producing a higher-quality TV than those produced in the United States.
C) United States companies selling to other countries chemical products that cannot be sold in the United States.
D) the United States purchasing coconuts from other countries, because they cannot be produced in the United States.

Question

Quizplus · Accepted Answer

Acquired comparative advantage refers to advantages that are developed through investment, innovation, and improvements in production processes or product quality. Choice B is an example of an acquired comparative advantage because it highlights how Japanese companies have developed a reputation for producing higher-quality TVs, presumably through technological innovation and quality control, rather than through inherent natural resources or geographic advantages.

An Example of an Acquired Comparative Advantage Is