International Economics

In the context of comparative advantage, explain why Italy and Spain operate in the automotive industry and have brands like SEAT (Spain) and FIAT (Italy), even though Germany has an absolute and comparative advantage in producing automobiles and Germany has internationally recognized brands such as Volkswagen (VW), BMW, Porsche and Mercedes).

(Note that Italy, Germany and Spain are members of the European Union where there are no tariff or any other trade restrictions among members.)

The information is all above, please answer it according to an illustration view.

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