Question

Discuss the following for Japan

At least two products that have provided Japan an absolute advantage in trade (if any).

At least two products that have provided Japan a comparative advantage in trade.

Factors that might have prevented Japan from achieving absolute and/or comparative advantages.

Answer 1

As far the definition of absolute advantage ,it is the ability of a country, individual, company or region to produce a good or service at a lower cost per unit than another entity that produces the same good or service . In this respect we can say that Japan is one of the largest producers of rise , crude steel , manufacturing etc .

Comparative advantage is an economic term that refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners . Japan exports motor cars , tobacco , electronic goods etc . A country will export only those goods in which it has comparative advantage .

Japan might have advantages in technology and manufacturing but it has certain drawbacks regarding geographical features , availability of raw materials or resources such as oil and petroleum ( abundant in Arab countries ) . This causes Japan to import mainly mineral fuel , petroleum , chemicals etc .