In the 1970s, Japan developed new technologies and achieved high productivity that resulted in Japan sustaining a comparative advantage in the automobile market with the United States.
Japan's high productivity, new technologies, and specialization led the country became one of the largest automobile producers since the 1970s. It competed with the automobiles made in the United States, who at the time was the production leader. Japanese cars were less expensive and still high-quality made. Consequently, Japan started to sustain a comparative advantage in the automobile market with the United States.
