Sources of Comparative Advantage
What generates comparative advantage? We look briefly at geography, factor proportions, increasing returns to scale and institutions such as labor market flexibility.
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A couple of requests:
-For the resources and links that you provide at the end of the lectures, please add them to this page outside of the video screen.
-Although I have my browser set so that links I've already visited show as a different color, that doesn't work with your videos. If you could fix that I would appreciate it.
Neither of these are big issues, and I understand that you you're both busy, so if they never get done it's not a big deal (the MRU idea is huge, these minor issues are not).
Actually Toyota started as a producer of automated looms: http://en.m.wikipedia.org/wiki/Toyota#section_2
However I don't think that Japan has a comparative advantage anymore, except that the capital invested is so huge they don't want to move out of Japan. But there is a reason that new automobile assembly plants are not build in western Europe or Japan.
Mr. Tabarrok, you mention division of knowledge as an improvement, but doesn't the age of non - fundamental inventions show us that maybe the generalist is missing, because communication and inspiration from other industries is missing.