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

question 30

Multiple Choice

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.

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Definitions:

Quantity

The amount or number of a material or immaterial good considered as a unit or in total.

Corn Seed

The seed of the corn plant, used for planting to produce corn crops; an essential agricultural product.

Yield Per Acre

The amount of a crop produced on one acre of land.

Lemonade Market

A hypothetical or real market scenario used to explain basic economic concepts, often involving the buying and selling of lemonade.