A good produced in Japan and sold to Korea
a. is a Korean export and Japanese import
b. is a Korean import and Japanese export
c. implies that Japan has an absolute advantage in the production of the good
d. implies that Korea has a comparative advantage in the production of the good
e. implies that Korea has an absolute advantage in the production of the good
B
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Indicate whether the statement is true or false
It is often stated that the Japanese firms develop and adapt new technology to manufacturing process twice as fast as U.S. firms. If this is true, ceteris paribus, we would conclude that the
A) depreciation rate of capital does not change, but the user cost of capital increases. B) depreciation rate of capital increases, but the user cost of capital decreases. C) depreciation rate of capital increases, and the user cost of capital increases. D) U.S. interest rate is too high, preventing American manufacturers from adopting new technologies.