Final answer:
Comparative advantage is the only source of sustainable competitive advantage available to U.S. companies.
Step-by-step explanation:
Comparative advantage is the only source of sustainable competitive advantage available to U.S. companies. It refers to a country's ability to produce a specific good or service more efficiently or at a lower opportunity cost compared to other countries.
This advantage can be dynamic and evolve over time as firms develop new skills and adapt to changes in the global market.
For example, if the United States has a comparative advantage in producing automobiles, it means that it can produce cars more efficiently or at a lower opportunity cost than other countries. This can be due to factors such as advanced technology, skilled labor, economies of scale, or specialized knowledge.
It is important for countries to identify and focus on industries where they have a realistic chance to be world-class producers rather than providing protectionism and subsidies to all industries. By leveraging their comparative advantage, countries can enhance their economic growth, global leadership, and national security.