Question

If japan has a comparative advantage in the production of microchips, how would that affect their international trade?

a. apan would not make microchips because they are expensive to produce.
b. countries would purchase microchips from japan because they are cheaper.
c. japan would produce microchips only for their domestic consumption.
d. countries are less likely to buy microchips from japan because they are more expensive.

Answer 1

Japan would have a comparative advantage in the production of microchips, making them cheaper and more attractive to other countries for international trade. option c.

Step-by-step explanation:

The comparative advantage that Japan has in the production of microchips would affect their international trade in the following way:

1. Countries would purchase microchips from Japan because they are cheaper.

Japan would be able to produce microchips efficiently and at a lower cost compared to other countries. This would make Japanese microchips attractive to other countries, leading to increased demand and international trade. Japan would be able to produce microchips efficiently and at a lower cost compared to other countries. This would make Japanese microchips attractive to other countries, leading to increased demand and international trade.