What does the news clip imply about comparative advantage

Reference no: EM132114677

Question: Chinese Tire Maker Rejects Charge of Defects U.S. regulators ordered the recall of more than 450,000 faulty tires. The Chinese producer of the tires disputed the allegations and hinted that the recall might be an effort to hamper Chinese exports to the United States. Source: International Herald Tribune, June 26, 2007

a. What does the news clip imply about the comparative advantage of producing tires in the United States and China?

b. Could product quality be a valid argument against free trade? If it could, explain how.

Reference no: EM132114677

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