Suppose that Canada can produce 15 units of timber or 3 units of grain. Suppose that Mexico can ...

Suppose that Canada can produce 15 units of timber or 3 units of grain. Suppose that Mexico can produce 6 units of timber or 2 units of grain. Which of the following is CORRECT?
 
  A) Mexico has a comparative advantage in grain production.
  B) Mexico has an absolute advantage in timber production.
  C) Canada has a comparative advantage in grain production.
  D) The countries would find trade mutually beneficial at a trading ratio of 1 grain for 2 timber.

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Question 2 - Explain the key principles of the labor and environmental side agreements to the NAFTA.
 
  What will be an ideal response?

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Question 3 - Which of the following is NOT an obstacle to increased international economic integration?
 
  A) Monopoly powers given to domestic companies of individual nations
  B) High tariff rates imposed by industrialized nations
  C) Health and safety standard requirements
  D) Labor and environmental standard requirements