U.S. regulators ordered the recall of more than 450,000 faulty tires. The Chinese producer of the tires disputed the allegations and hinted that the recall might be an effort by foreign competitors to hamper Chinese exports to the United States. Mounting scrutiny of Chinese-made goods has become a source of new trade frictions between the United States and China and fueled worries among regulators, corporations, and consumers about the risks associated with many products imported from China.
a. What does the information in the news clip imply about the comparative advantage of producing tires in the United States and China?
b. Could product quality be a valid argument against free trade?
c. How would the product-quality argument against free trade be open to abuse by domestic producers of the imported good?