Discussion Board 5 - International Relations Essay

Discussion Board 5 - International Relations - Essay Example Keohane argues that the USA is still a hegemon despite its troubled economy because it has what he calls ‘soft power’ – the power to legislate and the power to persuade (Keohane, R. O., & Nye, J. S., 2001) Although the Bush administration has severely damaged the image of the USA as a credible hegemon, there is little doubt about the status of the USA as a hegemon in 2011. Keohane, R. O., & Nye, J. S., (2001). Power and Interdependence, 3rd Ed. New York: Addison–Wesley. 2. What is Comparative Advantage? Given the case studies of Japan, the United States, and Costa Rica, in which products do you feel they have the comparative advantage? Comparative Advantage is a concept developed by David Ricardo during the early 19th century, which refers to trading exchanges between entities, where each entity benefits most if it produces those products where the comparative cost are lowest. In the case of Japan and the United states had a comparative advantage in food pr oducts, aircraft, chemicals and in optical and digital instruments. Japan in turn has a comparative advantage in the high technology area (although for items with low entry capital).