Question

China can make 10 computers and 20 cell phones an hour, and Japan can make 8 computers and 15 cell phones an hour. 1 Who has the comparative advantage in making computers? Cell phones? Answer: 2 If two countries were to trade with each other, who would export computers? Cell phones? Answer:

Answer 1

Comparative advantage can be defined as what another company/country makes my efficiently than another.

Therefore China has the comparative advantage for making computers and cell phones.

Answer 2 should be that China should be both exporting computers and cell phones to Japan.