Japan's fading success in the electronics industry can be explained by all of the following EXCEPT
A) the appreciation of the yen's exchange value.
B) lack of product innovation.
C) failure to use economies of large-scale production.
D) failure to recognize changing patterns of comparative advantage.

Question

Quizplus · Accepted Answer

Japan's electronics industry has faced challenges due to the appreciation of the yen, which made exports more expensive and less competitive globally (A), and a perceived lack of product innovation (B), which has allowed competitors from other countries to gain market share. Additionally, Japan has struggled with recognizing changing patterns of comparative advantage (D), as other countries have become more efficient in producing certain goods. However, Japan's electronics industry has historically benefited from economies of large-scale production, making choice (C) incorrect as it does not explain the fading success of Japan's electronics industry.

Japan's Fading Success in the Electronics Industry Can Be Explained