Question

Predict how the shift in the location of Toyota’s production from Japan to the United States is likely to alter the pattern of comparative advantage in automaking between the two countries

Answer 1

Toyotas-- Japanese-made automobiles were imported into the U.S. for the first time in 1958 and American auto makers began losing market shares to the well-engineered, gas-saving and affordable foreign vehicles.

Foreign-made, fuel-efficient cars gained a stronger foothold in the American market during and after the 1973 oil embargo and corresponding rise in gas prices in the wake of the Arab-Israeli war.

Answer 2

Access to market

Step-by-step explanation:

If the production is shifted the Japanesse industry will gain the comparative advantage of access to the U.S. market.