Question

Many of the toy products sold in the united states are imported from taiwan because the taiwanese can produce these products more efficiently than u.s. companies. this is an example of:

Answer 1

This is an example of Comparative Advantage. The Taiwanese have a comparative advantage over the US companies in producing toys which result in them doing this. This is a concept in economics that certain countries who are good at producing something concentrate on producing these at lower opportunity cost than other countries.