Pat decides to purchase a Hyundai from South Korea instead of the U. S.-produced Ford because of the vehicle's lower price. This illustrates the A) absolute advantage of the U. S. in producing Ford vehicles. B) absolute advantage of South Korea in producing Ford vehicles. C) comparative advantage of the U. S. in producing Hyundai vehicles. Eliminate D) absolute advantage of South Korea in producing Hyundai vehicles.

Question

Social Studies

Skye Ponce

19 November, 00:13

Pat decides to purchase a Hyundai from South Korea instead of the U. S.-produced Ford because of the vehicle's lower price. This illustrates the A) absolute advantage of the U. S. in producing Ford vehicles. B) absolute advantage of South Korea in producing Ford vehicles. C) comparative advantage of the U. S. in producing Hyundai vehicles. Eliminate D) absolute advantage of South Korea in producing Hyundai vehicles.

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Leonard Case · Answer 1

I believe the answer is D. absolute advantage of South Korea in producing Hyundai vehicles.

Absolute advantage refers to the ability of certain country to produce a particular goods or services at the lower price. The cost of living in south korea is significantly smaller than united states which make them could affor paying their workers with lower salary compared to us labor.