Many of the toy products sold in the United States are imported from Taiwan because the Taiwanese can produce these products more efficiently than U.S. companies. This is an example of:

Question

Quizplus · Accepted Answer

This scenario exemplifies comparative advantage, where a country or company can produce a good or service at a lower opportunity cost than another. In this case, Taiwan can produce toys more efficiently than U.S. companies, making it more beneficial for the U.S. to import from Taiwan rather than producing the toys domestically.

Many of the Toy Products Sold in the United States