How would you summarize US’s comparative advantage in commercial jets and grains? (answer this question by (1) comparing abundant factors and scarce factors.
It can not be copied and pasted. Maximun of similarities 15% minimum of 300 words
( I need for January 26 by 10 pm. I have to submit it at 11pm.
Subject: International Economy.
A country has a comparative advantage when it can produce goods with lower opportunity cost compared to other countries. It is mainly due to availability of natural resources used for the production of goods. US has a comparative advantage in manufacturing of commercial jets. This is because, earlier Airbus which has made China as the main hub of manufacturing operations of commercial jets is now reshoring the operations back to US due to the rising labor cost in China. Due to avaialbility of large number of skilled labor force for manufacturing jet, the country has a comparative advantage.Thus US has a comparative advantage in manufacturing commercial jets.
At the same time, due to rising costs and less availability of natural resources in US, it doesnt have a comparative advantage in grains. Given a task to the American people of both manufacturing cars and grains,, they can manufacture more cars in less time compared to grains. Due to scarcity of skilled labors and natural resources, US doesnt have a comparative advantage in manufacturing grains.
How would you summarize US’s comparative advantage in commercial jets and grains? (answer this question by...
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