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Comparative Advantage - China

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From what I've read so far, China is not able to advance so much because they have more resources than USA, or because they are even smarter but mainly because they are very resourceful and skilled at managing those recourses.

So Does this mean according to the theory of comparative advantage, that the country is rich in non-tangible assets such as intellectual capital?

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Solution Summary

The solution examines the comparative advantage China has due to the amount of resources China has versus the USA.

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Yes intellectual capital plays an important role in gaining comparative and competitive advantage. In fact Porter's Harvard Business Review article "The Competitive Advantage of Nations", is a useful reference.

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