What country holds the comparative advantage over the United States when it comes to creating labor-intensive products such as clothing, cell phones, and other products that require hand assembly thanks to the abundance of relatively low-cost, low-wage labor available?

Question

What country holds the comparative advantage over the United States when it comes to creating labor-intensive products such as clothing, cell phones, and other products that require hand assembly thanks to the abundance of relatively low-cost, low-wage labor available?

A. Switzerland
B. China
C. Great Britain
D. Japan

Answer 1

B. China

China holds a comparative advantage over the United States in producing labor-intensive products, largely due to its abundance of relatively low-cost, low-wage labor. This has made China a global manufacturing hub, especially for clothing, electronics, and a wide range of consumer goods that require hand assembly.