Germany has the comparative advantage in producing steel.

Question

Quizplus · Accepted Answer

Comparative advantage is determined by which country can produce a good at a lower opportunity cost compared to others. Without specific data comparing Germany's production costs and opportunity costs to those of other countries, it's impossible to definitively state that Germany has the comparative advantage in producing steel. Comparative advantage can vary depending on various factors including technology, resources, and labor efficiency.

Germany Has the Comparative Advantage in Producing Steel