Question 10 CONTENT FEEDBACK At one time, most of the watches produced in German

Question

Question 10 CONTENT FEEDBACK At one time, most of the watches produced in Germany were sold in Germany. Today, however, Germany both exports and imports watches. How could comparative advantage explain these data? Select the correct answer below: O It cannot; comparative advantage predicts that a country either exports a product or imports it, not both. O The pattern is not due to comparative advantage but to government restrictions on production. O Germany has a comparative disadvantage in watches. O Germany specializes in the production of high-end watches, which it exports, and imports low end watches that can be produced at lower cost elsewhere.

Explanation / Answer

D.Germany specialises in the production of high end watches which it export and low end watches import that can be produced at lower cost elsewhere .

Explanation:

Germany soecialised in high end watches so that he must contribute its resources in production of high end watches and will definately not waste its resources ,finance,or labour in thw production of low end watches that will cost him low if it will produced else where. To get comoatative advantage gwrmany must export high end watches because germany is specialise in it and import end watches from that country which is specialised in low end watches.

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