Table 3-5

-Refer to Table 3-5.The United States and Japan could benefit by the United States specializing in

Question

Table 3-5
 
-Refer to Table 3-5.The United States and Japan could benefit by the United States specializing in

Quizplus · Accepted Answer

According to the table, the United States has a comparative advantage in producing airplanes while Japan has a comparative advantage in producing cars. Therefore, if the two countries specialize in producing the goods in which they have a comparative advantage, they both can benefit from the trade. The United States can export airplanes and import cars from Japan, while Japan can export cars and import airplanes from the United States.

Table 3-5 -Refer to Table 3-5.The United States and Japan Could Benefit