In the past two decades the United States lost its comparative advantage in automobiles to Japan.What factor was most responsible for the development of Japan's comparative advantage in automobiles?

Question

Quizplus · Accepted Answer

Japanese firms excelled in process technology, which allowed them to produce high-quality automobiles at a lower cost than American firms. This was achieved through advancements in manufacturing techniques such as just-in-time inventory systems and total quality management. This gave Japanese firms a significant competitive advantage in the global market for automobiles. The other options, labor, external economies, and natural resources, although important, were not the primary factor that led to Japan's comparative advantage in automobiles.

In the Past Two Decades the United States Lost Its