a.Briefly explain the term comparative advantage as used by international economists.[4 marks].

b.Japan has comparative advantage in the production of cars relative to Australia. With the aid of a supply and demand diagram, explain to Japan's Minister of Trade how exporting cars to Australia would affect the economic wellbeing (i.e. surplus) of:

(i)Japanese car producers.[4 marks]

(ii)Japanese consumers.[4 marks]

(iii)Japan's economy as a whole.[4 marks]

c.Briefly explain why car producers in Australia might oppose a trade agreement with Japan.{Hint! No diagram required}[4 marks]

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