A country may have a comparative advantage in the production of cars if:
A) it imports most of the raw materials necessary to produce cars.
B) its citizens prefer driving cars to other forms of transportation.
C) it has strict environmental protection laws governing automobile emissions.
D) it has the natural resources needed to produce steel.

Question

Quizplus · Accepted Answer

Having the natural resources needed to produce steel is important for the production of cars, as steel is a key component in automobile manufacturing. Without access to the necessary raw materials, it would be difficult for a country to produce cars efficiently and competitively. The other choices do not directly relate to a country's comparative advantage in car production.

A Country May Have a Comparative Advantage in the Production