A columnist for Forbes argues, “Even if China is always better than Spain at producing textiles, if the best thing that Spain could be doing is textiles, then that’s what Spain should be doing.”
a. What does the columnist mean by “China is always better than Spain” in producing textiles (which include clothing, sheets, and similar products)? Was the columnist arguing that China has an absolute advantage over Spain in producing textiles, a comparative advantage, or both? Briefly explain.
b. The columnist noted that, in fact, Spain exports significant quantities of textiles. If his description of the situation in China and Spain is accurate, briefly explain how Spanish firms are able to export textiles in competition with Chinese firms.