In the 1970s and 1980s, North America lost its comparative advantage in consumer electronics goods to Japan.What factor was most responsible for the development of Japan's comparative advantage in consumer electronics goods?
A)Japanese firms benefited from external economies.
B)Japan has abundant supplies of labour.
C)Japanese firms excelled in process technology.
D)Japan has abundant supplies of natural resources needed to produce electronics goods.

Question

Quizplus · Accepted Answer

Japanese firms excelled in process technology, which gave them a competitive edge in producing high-quality, innovative consumer electronics goods. This enabled Japanese firms to create economies of scale and develop a reputation for producing reliable, high-quality electronic goods. These external economies, along with Japanese industrial policies and government support, allowed Japanese firms to dominate the global market for consumer electronics in the 1970s and 1980s. Japan does not have abundant supplies of labour or natural resources needed to produce electronics goods, indicating that options B and D are not valid choices.

In the 1970s and 1980s, North America Lost Its Comparative