what are the advantages of having comparative advantage in a car industry? for this assignment , we have selected 3 countries :1. Japan2. Germany3. IndiaPlease elaborate for each of 3 countries.words...

The famous theory of comparative advantage was developed by David Ricardo. One
country has a comparative advantage over another if its opportunity cost of producing a
commodity is lower than the other country’s opportunity cost of producing the same commodity.
Every nation is concerned with competing effectively in the world market.
Competitiveness not only depends on the performance and effectiveness of particular company,
but also on the industries as a whole.
The United Nations Conference on Trade and Development (UNCTAD) has developed
standards of “revealed” comparative advantage based on an index that compares the share of a
given sector in national exports to the share of the sector in world. This measurement suggests
that Germany and Japan have comparative advantages car industry and non-electrical machinery.
During the times of globalization, Germany has managed to protect its self-interests.
Automobiles consist of the maximum share in trade between U.S and Japan. From 1989 to 1995,
imported Japanese automobiles accounted for an average of 27 percent of total...