If the United States can make auto parts in less time than Mexico, then why are U.S. auto parts made in Mexico?
a. Trade is based on comparative advantage, not absolute advantage.
b. Mexico has a larger labor force and more manufacturing sites.
c. North American manufacturing is evenly divided based on treaties.
d. Mexican suppliers have an absolute advantage over U.S. companies.
a. Trade is based on comparative advantage, not absolute advantage.
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