from toy executives and some retailers that steep tariffs imposed on Chinese goods would raise prices for consumers. That, in turn, would supposedly mean fewer presents under the Christmas tree for families already squeezed by Biden-era inflation.
For example, if China sacrifices less value in electronics or machinery production to make toys than other countries sacrifice in producing software or advanced manufacturing equipment, China would have a comparative advantage in toy production. This advantage would arise not from absolute productivity or cost leadership but from the relative efficiency of producing toys compared to other industries within each country.
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