-Refer to Table 3-5. If Japan and Canada open up trade based on the principle of comparative advantage, who loses in the short term in Japan?
A) consumers
B) workers in airplane-producing companies
C) workers in car-producing companies
D) owners of car-producing companies

Question

-Refer to Table 3-5. If Japan and Canada open up trade based on the principle of comparative advantage, who loses in the short term in Japan?
A) consumers 
B) workers in airplane-producing companies 
C) workers in car-producing companies 
D) owners of car-producing companies

Quizplus · Accepted Answer

Workers in airplane-producing companies in Japan would lose in the short term because Japan has a comparative advantage in car production, meaning it would likely import airplanes, reducing the demand for domestically produced airplanes.