Comparative advantage in the production of trousers

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According to the U.S. Census Bureau, in July 2006 the United States expected aircraft worth $1 billion to China and imported aircraft worth only $19,000 from China. During the same month, however, the United States imported $83 million worth of men's trousers, slacks, and jeans from China but exported only $8,000 worth of trousers, slacks, and jeans to China. Using what you have learned about how trade is determined by comparative advantage, which country has the comparative advantage in aircraft production? Which country has the comparative advantage in the production of trousers, slacks and trousers? Why? Explain.

Reference no: EM131245093

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