d. Classify each example with the source of comparative advantage that it illustrates.Abundant inputsSpecialized skillsMass productionAnswer BankJapan's comparative advantage in automobile manufacturing (e.g., Toyota)Canada's comparative advantage in timberthe United States' comparative advantage in information technologySwitzerland's comparative advantage in watch makingSaudi Arabia's comparative advantage in oil International Trade – End of Chapter ProblemSources of comparative advantage include abundant inputs, specialized skills, and mass production.Abundant inputsdescribes the efficiencies achieved by the creation of specialized production lines and usingа.bargaining power to pay less on bulk prices for inputs.b.Specialized skillsdescribes building upon past innovations in a particular product line to maintain a comparativeadvantage.Mass productiondescribes the exploitation of a resource a country happens to have much of-for example,с.cheap labor or a raw material-to produce goods in which the resource is a key input.d. Classify each example with the source of comparative advantage that it illustrates.

Comparative advantage is an economy's ability to produce a particular good or service at a lower…

Abundant inputs Specialized skills Mass production Answer Bank Japan's comparative advantage in automobile manufacturing (e.g., Toyota) Canada's comparative advantage in timber the United States' comparative advantage in information technology Switzerland's comparative advantage in watch making Saudi Arabia's comparative advantage in oil