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Finally, we will examine how the distribution of gains from free trade causes much political debate regarding trade with China.
China – Comparative Advantage and Factor Endowment
China has a substantial comparative advantage due in part to its vast and inexpensive manpower used for labor purposes. China is a hub for production of various types of products. Raw materials are imported in China from the US and other countries around the world. Labor in china is so inexpensive, that it has been averaged at .047 cents per hour.
China also has a substantial abundance of raw materials such as arable land, forest covering, grasslands, water resources, hydropower sources, coal reserves and iron ore deposits...
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