United States business are affected by Comparative Advantage and the reason is that they are spending so much on healthcare costs and labor that they are losing out on improving their product because they lack the investment capacity because of all their overspending on overhead.
They can compete if they are able as a nation to re-negotiate healthcare contracts, retiree plans including dependent children and familiy members. By putting a cap on how much and for how long a dependent can receive a retiree's pension would save many companies millions of dollars. The cap should also go as far as, not allowing the pensions to raise retiree's income every year at a high percent. This in turn will help companies achieve a good standing and also always being able to provide their employees and retirees with good benefits.
By looking at how the economy is and how the nation is doing the The Big Three have been able to achieve success after reducing overhead, excessive dealerships, plants, and employees. The have had to re-structure their companies goals, investments, and they had to re-organize their plants to make them more technologically efficient and of course to bring in new products and services to help with the rise in the fuel economy.
Toyota had an advantage because they open their plant in the US around 1986 so the amount of employees and retirees are much less than US automakers which has caused them a savings. Big Three's high wages cost disadvantage averaged $30 in wages and $30 in health care costs. While Toyota and Honda averaged $24 for both. "Japanese competitors are widely viewed as the most efficient producers of automobiles in the world." (Carbaugh, 78)
This link is to show all the changes and success that the Big Three have acquired in 2011...
http://trade.gov/mas/manufacturing/OAAI/build/groups/public/@tg_oaai/documents/webcontent/tg_oaai_003659.pdf
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