Final answer:
The correct response is exogenous comparative advantage, where the external reputation of Japanese automakers for quality influences US consumers' purchasing decisions.
Step-by-step explanation:
An example of an exogenous comparative advantage is US consumers buying automobiles produced in Japan because Japanese companies have a reputation for producing a higher-quality automobile than those produced in the United States. The term 'exogenous' refers to factors that come from outside an economic system. In this context, the exogenous factor is the reputation for higher quality that Japanese automakers have developed, which is not inherently tied to the production costs or resources at their disposal, but rather to factors such as historical performance, branding, perception of quality, and consumers' trust.
The insight of comparative advantage demonstrates that even when one country has an absolute advantage in producing all goods, it can still be beneficial for it to specialize in producing goods for which it has a comparative advantage, exemplified by the fact that a country can have a lower opportunity cost in producing a particular good.