Question

Do you agree with the following arguments? Why?

a. Cambodia cannot find anything to export. There is no resource that is abundant—certainly not capital, and as a small country it is not even able to export labor-intensive good. Do you agree? Discuss.

b. Japanese labor productivity is roughly the same as that of the United States in the manufacturing sector (higher in some industries, lower in others), while the United States is considerably more productive in the service sector. But most services are nontraded. Some analysts argued that this poses a problem for the U.S. because its comparative advantage lies in things that cannot be sold on world markets.

Answer 1

This question is referring manufacturing sectors in Camodia, Japan & US of A.

Ans a. No, I don't agree. Because Cambodia is a majorly an agriculural country and agriculture produce forms majot stake in countires GDP. Paddy crop is primary produce however the country has a vast clothe industry. The garment not in terms of manufacturing but processing of cotton threads into fabric.In recent the country has modified its trade policies and is witnessing foreign direct investment. The country needs some investment in manufactiring domain and surely can compete with S Korea if not China (but who know the furture!)

Ans b. No, I don't agree. US sell almost eveything the world needs including Petroleum product. The list is failry long but a few that are fresh in my memory are capital goods or enginering goods, softwares, medical equipments, warfares equipments & gold. Its comparative advantage is undermined in this argument.