Technology is one means of developing specialization, and creating a comparative advantage.
In response to the actions by the Japanese automobile manufacturers, the American automobile manufacturers, General Motors in particular, implemented a massive program to convert their production facilities and processes to highly automated, state of the art operations that would supposedly put the Japanese to shame. The actions taken by the American automobile manufacturers, including General Motors, were intended not just to catch up with the Japanese manufacturers, but to actually restore a comparative advantage to the American automobile manufacturing industry.
The problem for the American automobile manufacturers, especially General Motors, however, was that the initiative did not work as it was intended to work. Although the gap between Japanese production costs and American production costs was reduced from the $2,500 of 1983 to $1,900 in 1986, almost all of
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