What is the effect of the economic reputation of a country to its comparative advantage?
well, is there any? for example that country used to be known as a corrupt country?
- simplicitusLv 71 decade agoFavorite Answer
Germany had a reputation for superb engineering. It made it much easier to sell goods that were based on engineering.
France had a reputation for "culture" but not for high-tech, so it could export wines and luxury goods more easily, but had a much harder time selling its technology, such as for its high-speed trains.
Scandinavia has a reputation for design; Italy for textiles; etc.
There are regular indices for more general concepts such as corruption,
friendliness to business, etc.
These can't help but have an effect, however small, on perceptions and hence comparative advantage.