Finland is a prosperous and homogeneous nation. Its merchandise exports in 2002 were valued at $43.8 billion, and its merchandise import for the same period was $30.6 billion. Its leading industries are telecommunications, shipbuilding, and forestry. It is the home to Nokia, the world's leading mobile phone maker. Nokia predicted that its worldwide sales in 2003 would increase by 10 percent. One of country's strengths is its shipbuilding industry, which is more efficient that it's Asian counterparts and has a reputation for innovation. One of the country's weaknesses is how difficult it for people from different cultures to be assimilated into the Finnish culture. The Finns blame the language, the climate, and the lack of existing foreign communities, but neighboring Sweden has a strong immigrant population.
-Finland's efficiency and innovation in the shipbuilding industry gives the nation a(n) _____ and explains one of the reasons why Finland exports all of the ships it manufactures.

Question

Quizplus · Accepted Answer

Finland's efficiency and innovation in the shipbuilding industry, which makes it more competitive than its Asian counterparts, is a classic example of a comparative advantage. This concept explains why a country would export certain goods—in this case, ships—because it can produce them more efficiently and innovatively than other countries.

Finland Is a Prosperous and Homogeneous Nation