An example of a(n) ________ comparative advantage is U.S. consumers buying automobiles produced in Japan because Japanese companies have a reputation for producing a higher-quality automobile than those produced in the United States.
A) unwarranted
B) acquired
C) natural
D) subsidized

Question

Quizplus · Accepted Answer

Acquired comparative advantage refers to advantages that are developed over time, such as through gaining a reputation for quality, innovation, or efficiency, rather than those based on natural resources or inherent factors. In this case, Japanese companies have developed a reputation for producing higher-quality automobiles, which is an acquired advantage.

An Example of A(n) ________ Comparative Advantage Is U