What is the United States Comparative Advantage....please be specific if you can.. Solution United States is richly endowed with highly educated workforce and technologically sophisticated machinery and equipment. These endowments help United States in producing human capital and physical capital intensive goods at lower opportunity cost vis-à-vis rest of the world. Production at lower opportunity cost implies that United States has comparative advantage in production of human and physical capital intensive goods. Semi-conductor, industrial machines, telecommunication equipments, civilian aircraft, organic chemicals are some product categories that are both physical and human capital intensive and if we analyze the export data of United States then we can see that top exports of United States comprises of these very items. In fact, if we list the top 15 export items in United States then almost all items comprises of goods that are capital intensive in nature both in terms of physical capital as well as human capital. Thus, United States has comparative advantage in production of capital (both human and physical) intensive goods..

1. What is the United States Comparative Advantage....please be specific if you can..
Solution
United States is richly endowed with highly educated workforce and technologically
sophisticated machinery and equipment. These endowments help United States in producing
human capital and physical capital intensive goods at lower opportunity cost vis-à-vis rest of the
world.
Production at lower opportunity cost implies that United States has comparative advantage in
production of human and physical capital intensive goods.
Semi-conductor, industrial machines, telecommunication equipments, civilian aircraft, organic
chemicals are some product categories that are both physical and human capital intensive and if
we analyze the export data of United States then we can see that top exports of United States
comprises of these very items. In fact, if we list the top 15 export items in United States then
almost all items comprises of goods that are capital intensive in nature both in terms of physical
capital as well as human capital.
Thus, United States has comparative advantage in production of capital (both human and
physical) intensive goods.