The United States is efficient at producing software and engineering services, but cannot produce clothes and electronics as efficiently as other nations. As such, the United States sells software and engineering services to other countries and buys clothes and electronics. This is an example of

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Business

Declan Williams

1 April, 23:50

The United States is efficient at producing software and engineering services, but cannot produce clothes and electronics as efficiently as other nations. As such, the United States sells software and engineering services to other countries and buys clothes and electronics. This is an example of

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Answers (1)

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Pugsley · Answer 1

Comparative advantage

Explanation:

The comparative advantage is a theory that refers to the situation in which a country can provide a product or service at a lower opportunity cost than other countries. This country would focus and producing that product or service in which is more efficient and will engage in international trade to get the other products from other countries. Because of this, this is an example of comparative advantage as the United States focused on software and engineering services because is more efficient in producing them and buys clothes and electronics from other countries.