Does Paying Portion of Healthcare Benefits Negatively Affects Comparative Advantage?

To answer this question, “whether the obligation of U. S. Automakers, the Detroit’s Big Three to pay a portion of healthcare benefits negatively affects comparative advantage?”  A response to this question is yes, it negatively affects comparative advantage because of the differences in the healthcare programs.

Some foreign automakers have government subsidized national healthcare system with employees and their dependents paying little or nothing into and low labor cost advantage, while the U. S. Automakers have a higher healthcare system that makes them lose competitive advantage in the market. So, it will be beneficial for the US automakers to restructure their priorities and concentrate on those activities that will make them more productive/competitive and respond to the market demands.

http://www.politicususa.com/big-automakers-push-single-payer.html 

The policy issue within the Detroit’s Big Three Automakers is poor management. Management should focus on what part of the production cycle that can be done domestically and restructured their firms to allow those goods and services that are globally competitive be imported. Globalization allow open markets and foreign products will enter that market causing competition among producers which leads to cheaper price.