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Finished manufactured goods in exchange for oil or another natural resource. As an aside, Japan has higher labor costs than many of it's neighbors.



the Japanese have recovered nicely since WWII from a comparative and many times absolute advantage in the production of goods in general. The reason for this is because relative to others countries such as the U.S.A, they have one variable cost that is far below other countries..............labor cost. Their citizens make pennies on the dollar for producing the same goods anyone else can. Therefore it's cheaper for this country to manufacture ANY goods and export them.

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โˆ™ 2011-09-13 11:03:57
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