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An editorial in the Wall Street Journal refers to China's comparative advantage in low-end manufacturing. If this observation is correct, can we conclude that Chinese
An editorial in the Wall Street Journal refers to China's "comparative advantage in low-end manufacturing." If this observation is correct, can we conclude that Chinese factories will be able to produce more low-end manufactured goods per hour worked than can factories in the United States and in China's other trading partners? Briefly explain. Source: The Editorial Board, "The Missing China Trade Strategy," Wall Street Journal, September 18, 2018. Part 2 A. Yes. This means that China can produce more low-end manufactured goods per hour worked compared to its trading partners. B. No. This only means that China has a higher opportunity cost in producing low-end manufactured goods compared to other countries. C. Yes. A comparative advantage in low-end manufacturing means that China also has an absolute advantage in low-end manufactured goods. D. No. This only means that China has a lower opportunity cost in producing low-end manufactured goods compared to other countries
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