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A.2.4.2 Discussion

A.2.4.2 Discussion

Q Discussion Assignment Review the videos: Need Help? Review the Following: • A.2.2.2 Advanced Explanation- Comparative Advantage-How to solve for Inputs and Outputs • A. Advanced Explanation -Comparative Advantage #2 • A.2.3.1 Assigned Videos- Specialization and Comparative Advantage • A.2.3.2 Assigned Videos- Comparative Advantage-Problem Solving • A.2.3.3 Assigned Videos-Comparative Advantage -Summary and Review While watching, the videos, focus on the question... Which country (person) should produce and export based on Comparative Advantage. Review the slide of the Auto Industry of Mexico below. Using the concept of comparative advantage, discuss (1) Why the automobile industry has move to Mexico and (2) why has it left its countries of origin. Please feel free to use outside sources of information in producing your response. (wages, level of work and production, etc) (This is NOT a political question, but rather an economic question. Students should separate politics and economics in the analysis of this question.--Economics allows us to properly analyze issues so that we may find solutions.) Discussion Question Requirements: Each student is required to post a 150 word response to the question. The student then must post at least a 50 word response to at lease ONE other student post. Post-=4 points. Comment = 2 Points Submit Original Post by the Due Date. Comments are open for four (4) days after the Due Date or until the Available Until Date How to Participate and Answer Discussion Questions

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The automobile industry is very expensive; the raw materials, such as the inputs they use, are very costly and available in only some countries. Most countries import the raw products of automobiles. Automobile products are also heavyweight, and their shipment is also costly. Due to high input costs and shipping charges, the automobile industry has shifted to Mexico. Labor wage in Mexico is also low, and it also saves charges. If the automobile industry remains in its origin country, then its opportunity cost is high, and when the cost is high, its price is also high.