Which economic term refers to the situation where one country can manufacture and export automobiles at a lower cost than its competitors?

Respuesta :

comparative advantage is the term

The correct answer is: "comparative advantage"

A comparative advantage is defined as the ability of a country, firm or organization of producing a certain good (for example, automobiles) at a lower opportunity cost than its competitors. Such advantage may arise from larger factor endownments or greater technological progress which enable such country/firm to produce more efficiently than others.