Question

Pakistan has developed a comparative advantage in the production of clothing. The source of its comparative a. advantage in this product istechnology.b. abundant supplies of natural resources.c. a large supply of unskilled workers.d. a favorable climate.

Answer 1

Answer: c. a large supply of unskilled workers

Explanation: Comparative advantage refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners enabling the sale of goods and services at a lower price than its competitors. Pakistan has a higher competitive advantage in the production of clothing as a result of large number of unskilled labour available to them. Since majority of the processes in cloth making are menial, repetitive and do not require much technical knowhow, it is evident, the reason why this is so. Countries, such as Pakistan, with a huge supply of relatively cheap unskilled labour would specialise in labour-intensive products/production as cloth making.

Answer 2

Answer:

c. a large supply of unskilled workers.  

Explanation:

Pakistan has developed a comparative advantage in the production of clothing. The source of its comparative is its large supply of unskilled labor. Pakistan is currently the fourth largest producer of cotton in the world and this is due to the large involvement of a large percentage of its unskilled labor in agriculture (cotton production) and cotton spinning. About 43% of this labor is involved in agriculture, 20.3% in industry.