An example of acquired comparative advantage is that
A) the United States imports coffee beans because coffee beans cannot be grown in the United States.
B) some U.S. consumers prefer German cars over American cars because German cars have a reputation for being very safe.
C) China specializes in the production of labor-intensive goods because of the amount of labor available in the country relative to capital.
D) the U.S. government provides a subsidy to firms that are trying to increase their exports to other countries.

Question

Quizplus · Accepted Answer

Some U.S. consumers prefer German cars over American cars because German cars have a reputation for being very safe. This is an example of acquired comparative advantage because the preference for German cars is not based on any inherent advantage in the production of cars in Germany, but rather on the perception of German cars as being safer.

An Example of Acquired Comparative Advantage Is That