How does China have a comparative advantage?

The model predicts that China has a comparative advantage in heavy goods in nearby markets, and lighter goods in more distant markets. This theory motivates a simple empirical prediction: within a product, China’s export unit values should be increasing in distance.

Does China have a comparative advantage in textiles?

The results have revealed that Bangladesh, China and Turkey have a strong comparative advantage in both the textile and clothing markets of the world, the US and the EU-15, while Germany has no significant comparative advantage in any of these markets.

Does China have a comparative advantage in manufacturing?

First, the authors found that types of Chinese manufactured products with comparative advantage in both world and US markets are increasing. Third, as a whole, Chinese manufactured exports are of greater comparative advantage in the world market than in the US market.

Which country has an absolute advantage in cloth production?

England has a comparative advantage in cloth –the good that it is the least inefficient in producing. Notice that the slope of the PPF reflects the opportunity cost (or price) of wine in terms of cloth. The slope indicates how much cloth must be given up to produce one more wine.

Which country has comparative advantage clothing?

Bangladesh
The findings reveal that while Bangladesh has a significant and increas- ing comparative advantage in clothing, Turkey has the highest comparative advantage in textiles in the US market.

Why does China have a national competitive advantage in the textile industry?

Textile products are China’s most competitive and staple exports, thanks to cheaper labor cost and comparatively integrated industrial chain. Advantage of developed countries’ textile industry lies in abundant capital, R&D, brand and matured marketing channels.

Which country has a comparative advantage in cloth?

When comparing the opportunity cost of 1 cloth for both France and the United States, we can see that the opportunity cost of cloth is lower in the United States. Therefore, the United States enjoys a comparative advantage in the production of cloth.

What country has comparative advantage?

In economic terms, a country has a comparative advantage when it can produce at a lower opportunity cost than that of trade partners. While a country cannot have a comparative advantage in all goods and services, it can have an absolute advantage in producing all goods.

https://www.youtube.com/watch?v=QUsCb80ClL8